Michaels Mechanical sells 6,000 jettison machines annually. Each machine costs Michaels $2,000 to purchase, inventory carrying costs

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Michael’s Mechanical sells 6,000 jettison machines annually. Each machine costs Michael’s $2,000 to purchase, inventory carrying costs are 45 percent of the purchase price, and the cost of placing an order with its supplier is $120.

(a) What is the EOQ?

(b) What is the total inventory cost at the EOQ level?

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ISBN: 978-1305666870

5th edition

Authors: Scott Besley, Eugene Brigham

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Question Posted: Feb 21, 2020 09:56 AM

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Michaels Mechanical sells 6,000 jettison machines annually. Each machine costs Michaels $2,000 to purchase, inventory carrying costs

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