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Calculate the number of orders if the annual requirement is 600,000 units and the EOQ is 30,000 units.

Business/Management

ScanSolve AI Answer

Answer

20 orders\text{20 orders}

Step-by-step solution

3 steps

Here is the solution for question number 11.

  1. Identify the given information.

    Annual Requirement (D) = 600,000 units
    Economic Order Quantity (EOQ or Q) = 30,000 units

  2. Apply the formula to find the number of orders.

    Number of Orders=Annual RequirementEconomic Order Quantity\text{Number of Orders} = \frac{\text{Annual Requirement}}{\text{Economic Order Quantity}}

  3. Substitute the values and calculate.

    Number of Orders=600,000 units30,000 units/order\text{Number of Orders} = \frac{600,000 \text{ units}}{30,000 \text{ units/order}} Number of Orders=20 orders\text{Number of Orders} = 20 \text{ orders}

    The number of orders is 20 orders\text{20 orders}.

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