SoCal Co. predicts that it will use 225,000 gallons of material during the year. The material is expected to cost $10 per gallon. It anticipates
SoCal Co. predicts that it will use 225,000 gallons of material during the year. The material is expected to cost $10 per gallon. It anticipates that it will cost $40 to place each order. The annual carrying cost is $2 per gallon.
a. Determine the most economical order quantity by using the EOQ formula.
b. Determine the total cost of ordering and carrying at the EOQ point.
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a EOQ 2 CN K 2 40 225000 2 18000000 2 9000000 3000 gallons ... View full answer
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Authors: Edward J. Vanderbeck
16th edition
9781133712701, 1133187862, 1133712703, 978-1133187868
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