Usman traders is a wholesale business unit based in Dubai having operations in Oman. The company is dealing with textile equipment in large quantities. The business has a separate stores department which maintains a full-fledged stores register which will be updated on a day to day basis with all the stock movements. At the end of the previous month, the company management has called for a strategic meeting to discuss the future plans to improve the performance of the business. One of the partner has raised his concern about the increasing total cost of the business and he suggested to use any appropriate Inventory control technique to reduce the overall cost of the company. The management accountant is considering to implement EOQ purchase in the business to reduce the overall cost of the company. Upon request, the stores department has provided with the following information to estimate the EOQ. Annual demand for the tableware is given as 10000 Units and the business has to spend OMR 40 per order in order to meet the cost of transportation, insurance and temporary storage. The holding cost per unit is given as 20 OMR per annum. Choose the EOQ of Usman traders from the following? a. 200 b. 400 c. 300 d. 100
Usman traders is a wholesale business unit based in Dubai having operations in Oman. The company is dealing with textile equipment in large quantities. The business has a separate stores department which maintains a full-fledged stores register which will be updated on a day to day basis with all the stock movements. At the end of the previous month, the company management has called for a strategic meeting to discuss the future plans to improve the performance of the business. One of the partner has raised his concern about the increasing total cost of the business and he suggested to use any appropriate Inventory control technique to reduce the overall cost of the company. The management accountant is considering to implement EOQ purchase in the business to reduce the overall cost of the company. Upon request, the stores department has provided with the following information to estimate the EOQ.
Annual demand for the tableware is given as 10000 Units and the business has to spend OMR 40 per order in order to meet the cost of transportation, insurance and temporary storage. The holding cost per unit is given as 20 OMR per annum.
Choose the EOQ of Usman traders from the following?
a.
200
b.
400
c.
300
d.
100
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