cost and revenues

caro372caro372 New MemberPosts: 5Registered
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

Comments

  • NpsNps Experienced Mentor Posts: 782Registered
    Which exam is it on?

    Cancel - just found it!
  • NpsNps Experienced Mentor Posts: 782Registered
    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
  • angmcangmc Feels At Home Posts: 73Registered
    Don't you divide by the holding cost?
  • NpsNps Experienced Mentor Posts: 782Registered
    Yes (second line of my workings).

    Edit - sorry angmc, thought you were the original poster, I think we cross posted!
  • caro372caro372 New Member Posts: 5Registered
    Eoq

    thanks for that, I can move on now.

    c
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