Management Accounting Question - Economic Order Quantity.
Hi, how would this question be answered
Calculate the economic order quantity and discuss any concerns you have as to whether the control limits are being adhered to and the effect this can have on BI Bags
Annual demand for grade 3 leather = 400 metres
Holding cost = £10/m per annum
Cost of placing an order = £6
Maximum level = 80 metres
Minimum level = 20 metres
Calculate the economic order quantity and discuss any concerns you have as to whether the control limits are being adhered to and the effect this can have on BI Bags
Annual demand for grade 3 leather = 400 metres
Holding cost = £10/m per annum
Cost of placing an order = £6
Maximum level = 80 metres
Minimum level = 20 metres
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