The production order quantity is units is 184.
Solution:
Q = (2KD/(h(1-x)^(1/2)
Q = (2503650/(12(1-(10/100)
= (365,000/10.8)^(1/2)
= 183.83
In conventional production inventory management, production order quantity was determined by referring to costs such as ordering cost and inventory cost. However, quality may change due to deterioration during the manufacturing process.
Economic Order Quantity is the ideal order quantity that a business purchases for its inventory. A minimum order quantity is a small number of products that must be purchased from the supplier in one order. The supplier sets his MOQ so as not to waste resources on orders that bring little or no profit. May be based on quantity or total order value.
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