The annual demand for a product is 800 units and unit
price of the product is N 0.0%. if the ordering cost is #
and the holding cost is 10% of the unit price; determine
the @EOQ in the units. (i) total variable cost
(iti) mamber of orders per
annum
help no ideal
To determine the Economic Order Quantity (EOQ) in units, you need to use the following formula:
EOQ = √[(2 * Demand * Ordering Cost) / Holding Cost]
Given the following information:
- Annual demand for the product: 800 units
- Unit price of the product: N 0.0%
- Ordering cost: #
- Holding cost: 10% of the unit price
To calculate the EOQ, you need to substitute the values into the formula:
EOQ = √[(2 * 800 * #) / (0.1 * 0.0% * #)]
Since some values are missing or unclear in your question (such as the unit price and the ordering cost), it is not possible to calculate the EOQ accurately. You will need to provide the missing information for a more precise answer.
Once you have the EOQ, you can calculate the following:
(i) Total variable cost:
Total Variable Cost = Unit Price * EOQ
(ii) Number of orders per annum:
Number of Orders per Annum = Annual Demand / EOQ
Again, without the complete information, it is not possible to provide the accurate calculation. Please provide the missing values for a more precise response.