MAC3701 CTM Study Notes Tutoring 2020

STUDY UNIT 1 PLANNING AND CONTROLLING INVENTORY Factors Involved In Inventory Analysis Economic Order Quantity ABC Ltd. is engaged in sale of footballs. Its cost per order is $400 and its carryin g cost unit is $10 per unit per annum. The company has a demand for 20,000 units per year. Calculated the order size, total orders required during a year, total carrying cost and total ordering cost for the year. Re-Order Point and Safety Stock Determination of the order point is based on three factors:...