480 Quantity Of Raw Materials Used Per Day Units 250 Number Of Production Days Per Year Days Cost Of Placing An Or 1 (95.25 KiB) Viewed 32 times
Tau Limited uses the economic order quantity (EOQ) model to determine the quantity of raw materials to order. The following details concerning the raw materials are presented to you:
= 480 Quantity of raw materials used per day units = = 250 Number of production days per year days Cost of placing an order = = R60 = Invoicing cost price per unit R10,50 Annual holding/carrying costs = R3,60 per unit The number of orders to be placed in a year amount to Select one: O A. 30 orders B. 60 orders C. 88 orders D. 20 orders
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