Re: [ vuZs.net ] MGT201 Answer requested with calculation

Thank you Fuad for self explanatory solution and reference.

Regards

Zubair Hussain

www.vuzs.net

On Sat, May 28, 2011 at 9:18 AM, ◆Fuad Hasan◆ <mrfuad2007@gmail.com> wrote:

 What is the economic order quantity for an automobile dealer selling 2,000 cars per year, at a cost of Rs.750 per order, and a carrying cost of Rs.300 per automobile?

       ► 40 cars

       ► 71 cars

       ► 100 cars

       ► 126 cars

Calculation:-

[2 * (Annual Usage in Units * Order Cost) / Annual Carrying Cost per Unit]^(1/2).

[ 2 * ( 2000 * 750 ) / 300 ]^1/2  

[ 2* 5000]^1/2

[10000]^1/2

100

Ref: http://www.ehow.com/how_5098188_calculate-eoq.html

Ref 2.: http://www.accountingformanagement.com/economic_order_quantity_eco.htm

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Regards,
Fuad Hasan
MBA Finance (4th Semester)

Islamabad

www.vuzs.net

(Pure Study Website)

Keep visiting www.vuzs.net

(No distracting material - Just Study for your future) 

On Sat, May 28, 2011 at 9:43 AM, Zubair Hussain <zubair@vuzs.net> wrote:

 What is the economic order quantity for an automobile dealer selling 2,000 cars per year, at a cost of Rs.750 per order, and a carrying cost of Rs.300 per automobile?

       ► 40 cars

       ► 71 cars

       ► 100 cars

       ► 126 cars

Regards

Zubair Hussain

www.vuzs.net

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