AccountancyNEB 2081
If number of order is 6 times and Economic order quantity is 3,000 kg. Find out annual requirement. GROUP: B Short answer questions 8 × 5 = 40
1Answer
To determine the number of orders placed in a year using the Economic Order Quantity (EOQ) model, we use the following formula:
Given:
- Annual requirement = 18,000 kg
- EOQ = 3,000 kg
Calculation:
Thus, the number of orders placed in a year is 6.
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