Q.3.1 Gill Enterprises produces a number of consumer items, including a stove. A key component of the stove is purchased from an outside supplier. In total, the company purchases 2 500 components each year. It costs approximately R12 to place an order and it costs R0.25 to carry one part in inventory for a year. The company is operational for 50 weeks in a year. Required: Q.3.1.1 Calculate the economic order quantity for the part.
Q.3.1 Gill Enterprises produces a number of consumer items, including a stove. A key component of the stove is purchased from an outside supplier. In total, the company purchases 2 500 components each year. It costs approximately R12 to place an order and it costs R0.25 to carry one part in inventory for a year. The company is operational for 50 weeks in a year. Required: Q.3.1.1 Calculate the economic order quantity for the part.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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![Q.3.1
Gill Enterprises produces a number of consumer items, including a stove. A key
component of the stove is purchased from an outside supplier. In total, the company
purchases 2 500 components each year. It costs approximately R12 to place an order
and it costs R0.25 to carry one part in inventory for a year. The company is
operational for 50 weeks in a year.
Required:
Q.3.1.1 Calculate the economic order quantity for the part.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faf37ac76-9dc4-4816-8f7f-12ca11059963%2F44b93ede-01c6-4be8-82b7-306e5ac1da9d%2Frf6zi0o_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Q.3.1
Gill Enterprises produces a number of consumer items, including a stove. A key
component of the stove is purchased from an outside supplier. In total, the company
purchases 2 500 components each year. It costs approximately R12 to place an order
and it costs R0.25 to carry one part in inventory for a year. The company is
operational for 50 weeks in a year.
Required:
Q.3.1.1 Calculate the economic order quantity for the part.
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