Question
Annual demand is 3360 units at Hofmeister's Sports Vitamins, Inc where receipt of the orders is instantaneous. Order costs are $15/order, and carrying costs
Annual demand is 3360 units at Hofmeister's Sports Vitamins, Inc where receipt of the orders is instantaneous. Order costs are $15/order, and carrying costs are $0.07/unit/year. They operate 365 days/year. Find the following: a. EOQ (3 points) b. Annual total costs (3 points) c. Number of orders per year (2 points) d. Order cycle time (2 points)
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Step: 1
a To find the Economic Order Quantity EOQ for Hofmeisters Sports Vitamins we need to use the following formula EOQ 2DS H Where D Annual demand in unit...Get Instant Access to Expert-Tailored Solutions
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