03 Amount Low cost Mannequin

11 thoughts on “03 Amount Low cost Mannequin”

1. If unit price is $5.00, and order quantity is 700. How come the Product Cost is $25000. Should this be $35000?

2. please help
   Demand is 5,000 units per year. Ordering cost is N100 per order and the basic unit price is N5. Carrying cost are 20% per annual. Discounts are available thus:
   
   1,200 – 1,399 Less 10%
   
   1,400 – 1,499 Less 15%
   
   1,500 and over Less 20%
   
   What is the most economical quantity to order?

3. Amazing and very nicely paced explanation. Have a midterm on this topic this week so it really helped in understanding.

4. Thank you sir

5. Many thanks sir. I wish u were our instructor. I was stucked at the point as to what quantity should be taken, but u cleared it. Apart fro this i wonder why EOQs should be calculated in quantity discount models if they have apparently nothing to do with it because ultimately we go for the discount quantities.

6. The quantity of what you have ordered must be consumed otherwise it will become excess stock.

7. thank you, short & simple 🙂

8. Thanks Ramesh Soni, you sure far better explain than my teacher. I got it clear now.

9. was annual product cost an assumption

10. thank u

11. Thanks for sharing . could you please further explain how you calculate the annual holding cost ?