Assignment Instructions/ Description
please take your time to answer the questions and show work outs. notes to answer the questions is in the link below.
https://drive.google.com/file/d/10cJo3Y0KwTDvtJDAm9Yr2L3-iS841CBq/view?usp=drivesdk Image transcription textQuestion 4
Juicy Patties uses 3,500 units of flour mix per year which it stores at $0.70 per unit per annum.
The cost to place an order is $100.
a.
Calculate:
i. The economic order quantity (EOQ)
ii. The number of orders
b.
If the company decides to make the flour mix on its own machine with a potential
capacity of 4,000 units per year, calculate:
i. the batch order quantity (BOQ)
ii. the annual ordering cost
iii. the annual carrying cost... Show more