Quelpr
6 marksInventory Management

CAPE Management of Business Unit 2 · 2015 · Paper 2 · Question 1(b)(ii)

Inventory management figures for UUL: Ordering cost = USD350.00, Holding cost = USD700.00, Annual demand = 3 000 metres of fabric.

Calculate the economic order quantity for the sky blue gabardine fabric used by Unique Uniforms Ltd.

The mark scheme is shown once you've answered.

Practise this question

Other parts of this question

  1. 1(a)(i)Define the term 'Economic order quantity'.[2 marks]
  2. 1(a)(ii)Define the term 'Just-in-time'.[2 marks]
  3. 1(a)(iii)Define the term 'Inventory management'.[2 marks]
  4. 1(b)(i)State the formula for calculating economic order quantity.[1 mark]
  5. 1(c)Discuss THREE ways in which Unique Uniforms Ltd can benefit from having a proper inventory management system.[12 marks]

More practice: the rest of this paper · more Inventory Management questions · all CAPE Management of Business Unit 2 past papers