Answer:
The answer is the economic order quantity is 400 units.
Explanation:
For this question, we apply the economic order quantity (EOQ) formula developed by Ford W. Harris in 1913, to find the answer. The formula is shown as below:
EOQ = 
in which: EOQ: Economic order quantity; D: Annual Demand in units; S: Cost per order; H: Annual holding cost per unit.
So by substituting the information we are given in the question, we have: D = 1,200 units; S = $80 and H = $1.2. Thus:
EOQ =
= 400 units.
So, the economic order quantity is 400 units.
Answer:
5,500 units
Explanation:
The computation is shown below:
Given that
Need to sell the units in a month = 4,000 units
Beginning inventory = 1,000 units
Desired ending inventory = 2,500 units
So, by considering the above information, the units to be produced is
= Desired ending inventory + need to sell the units in a month - beginning inventory
= 2,500 units + 4,000 units - 1,000 units
= 5,500 units
Answer:
Peter's percent value-added time is just over 3%. is the correct statement
Explanation: