A company wishes to establish an EOQ for an item for which the annual demand is $800,000,
Question:
A company wishes to establish an EOQ for an item for which the annual demand is
$800,000, the ordering cost is $32, and the cost of carrying inventory is 20%. Calculate the following:
a. The EOQ in dollars.
b. Number of orders per year.
c. Cost of ordering, cost of carrying inventory, and total cost.
d. Compare your answers to those in problem 10.3.
LO.1
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Related Book For
Introduction To Materials Management
ISBN: 9780132337618
6th Edition
Authors: J. R. Tony Arnold, Chapman, Stephen N., Lloyd M. Clive
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