Calculate Frequency of orders in a year with 360 days if EOQ policy is being adopted with following ...........

Costing - Phase (I & II) Basics of Cost Control and Analysis

Calculate Frequency of orders in a year (with 360 days), if EOQ policy is being adopted, with following particulars:

EOQ = 500 units

Annual consumption= 5000 units

36.5 days

36 days

25 days

Cannot be calculated

Frequency of orders in a year, if EOQ policy is being adopted, is calculated as:

Days in a year/Number of orders

Where number of orders= Annual Consumption / EOQ

In given problem, Number of orders= 5000/500= 10 orders

Frequency of orders= 360 days/10= 36 days.

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