Question
1 - XYZ is a retailer and sells 144,000 units per year. It purchases from a single supplier. Fixed costs per order are $846 and
1 - XYZ is a retailer and sells 144,000 units per year. It purchases from a single supplier. Fixed costs per order are $846 and carrying cost is $8 per unit. How many units should XYZ purchase per order? That is, what is the Economic Order Quantity?
Enter your answer rounded off to two decimal points. Margin for error: +/- 1
2 - XYZ is a retailer and sells 183,000 units per year. It purchases from a single supplier. Fixed costs per order are $961 and carrying cost is $10 per unit per year. In economic order quantity model, what would be the lowest total inventory cost? That is, the lowest sum of total carrying cost and total shortage cost.
Enter your answer rounded off to two decimal points. Margin for error: +/- $10
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