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ECONOMIC ORDER QUANTITY

Instructions: Compute what is being required in the problem with corresponding solution.
Gener company has an annual demand of 13000 units of material A. The cost per unit is P12.
The order cost is P200 per order; and the annual carrying cost per unit is P5.20. Assume that
the units will be required evenly throughout the year.
Compute for the following:
A. Economic order quantity
B. Number of orders per year
C. Time interval per order
D. Annual carrying cost
E. Annual ordering cost
Solution:

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