It successfully negotiated credit terms of 4.5/10 net 60 days with its creditors whilst credit...
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It successfully negotiated credit terms of net days with its creditors whilst credit terms of net days were granted to debtors. The purchase cost of the product sold by Nordic Limited was R per unit. The cost of keeping each unit in inventory was of the unit cost. The cost of placing an order for the product was R The selling price was R per unit and the sales for the year totalled units, of which was on credit. The company purchased units of which was on credit. It took approximately days for the goods to be delivered to Nordic Limited each time an order was placed with the supplier. Nordic Limited was open for business for all the days in except for the weekends. On December an amount of R was owed to suppliers for goods purchased on credit whilst an amount of R was owed by customers for credit sales. The company had an inventory turnover of times.
Calculate the economic order quantity
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