cost and revenues

caro372

re task 1.1c

how do they get the answer 450kg

square route of

annual demand 67500 x 2

x fixed cost 1.20

- holding cost .80?

thanks

Nps

Which exam is it on?

Cancel - just found it!

Nps

Your figures are right, are you sure you're calculating the square root at the right time?

2 x 1.2 x 67500 = 162000
Divide this by 0.8 = 202500
Square root of 202500 = 450

angmc

Don't you divide by the holding cost?

Nps

Yes (second line of my workings).

Edit - sorry angmc, thought you were the original poster, I think we cross posted!

caro372

Eoq

thanks for that, I can move on now.

c