Cortez Chemical, Inc., requires 20,000 gallons of material annually; the cost of placing an order is $20,
Question:
Cortez Chemical, Inc., requires 20,000 gallons of material annually; the cost of placing an order is $20, and the annual carrying cost per gallon is $5.
Required:
Determine the EOQ from potential order sizes of 300, 400, 500, 600, 700, and 800 gallons by constructing a table similar to the one appearing on page 68.
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