Wonderland has a plant that manufactures computer chips. Expected demand for these chips in March 2018 is 52,000 units. Wonderland estimates the cost per purchase order to be $25. The monthly holding cost for one chip is 5c.
REQUIRED:
a)i)Compute the economic order quantity for the chips.
ii)Compute the number of orders in March 2018.
b)List the motives for holding cash in a business.
c)Name at least four factors that influence the length of the credit period in a business.

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The Answer of Wonderland has a plant that manufactures computer chips. Expected demand for these chips in March 2018 is 52,000 units. Wonderland estimates the cost per purchase order to be $25. The monthly holding cost for one chip is 5c.
REQUIRED:
a)i)Compute the economic order quantity for the chips.
ii)Compute the number of orders in March 2018.
b)List the motives for holding cash in a business.
c)Name at least four factors that influence the length of the credit period in a business.

Wonderland Has a Plant That Manufactures Computer Chips