f9 lec ch 6

working capital ratio

raw mat inventory holding ratio 18.25

avg receivable period 60.83333
avg payable period 40.55556
fg stock holding period 29.2
wip period 20.63043
88.35821

question 1
eoq 400
pur cost 19200
ordering cost 240
holding cost 240
total cost 19680

question 2

pka co.
calculate the cost of current ordering policy and determine the savings that could be made

prod requirements/demand 625000

current order qty 100000

eoq 25000

100000 25000
t.p.c 0 0
t.o.c 1562.5 6250
t.h.c 25000 6250
26562.5 12500

savings 14062.5

flg co.

part(d)
eoq 1200
(ii)
no of orders 1200 10000

t.p.c 720000 712800

t.o.c 300 36
t.h.c 300 10000
720600 722836

(i)
no of orders 1200

t.p.c 720000
t.o.c 300
t.h.c 300
720600