B Com Exam > B Com Questions > Calculator economic order quantity EOQ and to...
Start Learning for Free
Calculator economic order quantity EOQ and total ordering cost from the following Annual usage 3600units ordering cost 1000per order purchase price 200rupees carrying cost 10%?
Most Upvoted Answer
Calculator economic order quantity EOQ and total ordering cost from th...
Calculator Economic Order Quantity (EOQ) and Total Ordering Cost
Annual Usage: 3600 units
Ordering Cost: 1000 per order
Purchase Price: 200 rupees
Carrying Cost: 10%
Step 1: Calculate EOQ
EOQ formula: sqrt((2 x Annual Usage x Ordering Cost) / Carrying Cost)
sqrt((2 x 3600 x 1000) / 0.10) = 600 units
Therefore, the economic order quantity (EOQ) is 600 units.
Step 2: Calculate Total Ordering Cost
Total Ordering Cost formula: (Annual Usage / EOQ) x Ordering Cost
(3600 / 600) x 1000 = 6000 rupees
Therefore, the total ordering cost is 6000 rupees.
Conclusion
The economic order quantity (EOQ) for the given data is 600 units. The total ordering cost is 6000 rupees. By using this data, the business can optimize their inventory management and minimize their ordering costs while still meeting their annual usage requirements.
Annual Usage: 3600 units
Ordering Cost: 1000 per order
Purchase Price: 200 rupees
Carrying Cost: 10%
Step 1: Calculate EOQ
EOQ formula: sqrt((2 x Annual Usage x Ordering Cost) / Carrying Cost)
sqrt((2 x 3600 x 1000) / 0.10) = 600 units
Therefore, the economic order quantity (EOQ) is 600 units.
Step 2: Calculate Total Ordering Cost
Total Ordering Cost formula: (Annual Usage / EOQ) x Ordering Cost
(3600 / 600) x 1000 = 6000 rupees
Therefore, the total ordering cost is 6000 rupees.
Conclusion
The economic order quantity (EOQ) for the given data is 600 units. The total ordering cost is 6000 rupees. By using this data, the business can optimize their inventory management and minimize their ordering costs while still meeting their annual usage requirements.
|
Explore Courses for B Com exam
|
|
Similar B Com Doubts
Calculator economic order quantity EOQ and total ordering cost from the following Annual usage 3600units ordering cost 1000per order purchase price 200rupees carrying cost 10%?
Question Description
Calculator economic order quantity EOQ and total ordering cost from the following Annual usage 3600units ordering cost 1000per order purchase price 200rupees carrying cost 10%? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Calculator economic order quantity EOQ and total ordering cost from the following Annual usage 3600units ordering cost 1000per order purchase price 200rupees carrying cost 10%? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Calculator economic order quantity EOQ and total ordering cost from the following Annual usage 3600units ordering cost 1000per order purchase price 200rupees carrying cost 10%?.
Calculator economic order quantity EOQ and total ordering cost from the following Annual usage 3600units ordering cost 1000per order purchase price 200rupees carrying cost 10%? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Calculator economic order quantity EOQ and total ordering cost from the following Annual usage 3600units ordering cost 1000per order purchase price 200rupees carrying cost 10%? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Calculator economic order quantity EOQ and total ordering cost from the following Annual usage 3600units ordering cost 1000per order purchase price 200rupees carrying cost 10%?.
Solutions for Calculator economic order quantity EOQ and total ordering cost from the following Annual usage 3600units ordering cost 1000per order purchase price 200rupees carrying cost 10%? in English & in Hindi are available as part of our courses for B Com.
Download more important topics, notes, lectures and mock test series for B Com Exam by signing up for free.
Here you can find the meaning of Calculator economic order quantity EOQ and total ordering cost from the following Annual usage 3600units ordering cost 1000per order purchase price 200rupees carrying cost 10%? defined & explained in the simplest way possible. Besides giving the explanation of
Calculator economic order quantity EOQ and total ordering cost from the following Annual usage 3600units ordering cost 1000per order purchase price 200rupees carrying cost 10%?, a detailed solution for Calculator economic order quantity EOQ and total ordering cost from the following Annual usage 3600units ordering cost 1000per order purchase price 200rupees carrying cost 10%? has been provided alongside types of Calculator economic order quantity EOQ and total ordering cost from the following Annual usage 3600units ordering cost 1000per order purchase price 200rupees carrying cost 10%? theory, EduRev gives you an
ample number of questions to practice Calculator economic order quantity EOQ and total ordering cost from the following Annual usage 3600units ordering cost 1000per order purchase price 200rupees carrying cost 10%? tests, examples and also practice B Com tests.
|
|
Explore Courses for B Com exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup