Given: Peter Piper has projected sales of 72,000 pipes this year, ordering cost of P6 per order, and carrying costs of P2.40 per pipe. With the given data, can you give me the solution on how to get: -What is the economic ordering quantity? -Total inventory cost at EOQ -How many orders will be placed during the year? -What will the average inventory be? Thank you in advance.
Given: Peter Piper has projected sales of 72,000 pipes this year, ordering cost of P6 per order, and carrying costs of P2.40 per pipe. With the given data, can you give me the solution on how to get: -What is the economic ordering quantity? -Total inventory cost at EOQ -How many orders will be placed during the year? -What will the average inventory be? Thank you in advance.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Given:
Peter Piper has projected sales of 72,000 pipes this year, ordering cost of P6 per order, and carrying costs of P2.40 per pipe.
With the given data, can you give me the solution on how to get:
-What is the economic ordering quantity?
-Total inventory cost at EOQ
-How many orders will be placed during the year?
-What will the average inventory be?
Thank you in advance.
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