question archive XYZ Company imports pp-resin in bags from Thailand to manufacture plastic bottles
XYZ Company imports pp-resin in bags from Thailand to manufacture plastic bottles
Subject:Operations ManagementPrice:2.86 Bought3
XYZ Company imports pp-resin in bags from Thailand to manufacture plastic bottles. The annual usage rate of the resin is 9000 bags. The cost of placing and receiving an order is Tk24000. The estimated monthly carrying cost is Tk100 per bag. i. Find the economic order quantity
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EOQ= 2,078
Step-by-step explanation
Economic order quantity, EOQ=√((2 x Demand x Ordering Cost) ÷ Carrying Costs)
=√((2 x 9000x 24000) ÷ 100)
=√4,320,000
=2078.46
≈2078
