The weekly demand is 200 units . The cost to place an order is $2.00, and the time from ordering to receipt is four weeks. The weekly inventory carrying cost is $0.01 per unit. Suppose that the weekly production rate is 500 units. What is the optimal EPQ quantity

Optimal EPQ quantity = 2633

Explanation:

Annual demand = D = 200/ week x 52 weeks = 10400 units

Cost to place an order = Co = $2

Weekly inventory carrying cost = I = $0.01

Weekly demand = d = 200 units

Weekly production rate = p = 500

Optimal EPQ quantity = Square root ( 2 x D x C/I x ( p/p-d))

= Square root ( 2 x 10400 x 2/0.01x ( 500 /500 – 200)

= Square root ( 2 x 10400 x 200 x 500/300)

= 2633.12 ( 2633 rounded to nearest whole number )

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.

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