After Target was forced to leave Canada because of supply chain problems, Walmart Canada increased its emphasis

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After Target was forced to leave Canada because of supply chain problems, Walmart Canada increased its emphasis on efficient supply chain management. Congratulations, you have been hired as one of Walmart's new inventory analysts! Your first task is to determine the optimal order quantity of one of the most profitable product lines, Pokemon trading game cards. Pokemon TCG EX boxes wholesale for $10 each and sell for $25 each. Order costs are estimated at $7 5 per order and holding costs are relatively small at only $.15 per box. Walmart annually sells about 50,000 Pokemon TCG EX boxes across Canada. What is the EOQ solution? What is the difference in inventory costs between the EOQ solution and the current order quantity of 10,000 boxes?
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Fundamentals of Corporate Finance

ISBN: 978-1259024962

6th Canadian edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim

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