Melchar Company uses 78,125 pounds of oats each year. The cost of placing an order is $18,

Question:

Melchar Company uses 78,125 pounds of oats each year. The cost of placing an order is $18, and the carrying cost for one pound of oats is $0.45.
Required:
1. Compute the for oats.
2. Compute the carrying and ordering costs for the EOQ. Economic Order Quantity
Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs. This production-scheduling model was developed in 1913 by Ford W. Harris and has...