Norwich Company has determined the following costs are associated with one of its products. conomic order quantity (EOQ)
Annual quantity used in units 4800
Cost of placing one order (f) 3
nnual cost of carrying one unit in stock (E) 8
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If the annual cost of carrying one unit in stock is increased to £10 and the cost of placing one order is increased to £4 the economic order quantity (EOQ) is
A) 62 units.
B) 66 units.
C) 4 units.
D) 77 units.
Correct Answer:
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Q19:
The reorder point is
A)925 units.
B)700 units.
C)1320 units.
D)810
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