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The annual demand of a product sold by Hamza Limited is 400000 units. The product is purchased at a price of R20 per unit. The carrying cost of inventory amounts to 5% of the unit purchase price. The ordering cost is R20 per order. How much is the total annual ordering cost based on the EOQ (expressed to the nearest Rand)?  A. R2 000  B.R440 C. R2 660   D. R4 000

The annual demand of a product sold by Hamza Limited is 400000 units. The product is purchased at a price of R20 per unit. The carrying cost of inventory amounts to 5% of the unit purchase price. The ordering cost is R20 per order. How much is the total annual ordering cost based on the EOQ (expressed to the nearest Rand)?  A. R2 000  B.R440 C. R2 660   D. R4 000

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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The annual demand of a product sold by Hamza Limited is 400000 units. The product is purchased at a price of R20 per unit. The carrying cost of inventory amounts to
5%
of the unit purchase price. The ordering cost is R20 per order. How much is the total annual ordering cost based on the EOQ (expressed to the nearest Rand)?

 A. R2 000

 B.R440

C. R2 660 

 D. R4 000

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