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Bramble Inc. uses 169 kilograms of material X per year. Material X costs $35.00 per kilogram. It costs $ 1.80 to place an order and
Bramble Inc. uses 169 kilograms of material X per year. Material X costs $35.00 per kilogram. It costs $ 1.80 to place an order and $ 3.60 per kilogram to store material X. Currently, Bramble is ordering material X in 17-kilogram batches. Is this the most economical order size? If not, what is the economic order quantity? How much will Bramble save by using the EOQ? (Round answers to 2 decimal places, e.g. 125.74.)
Economic order quantity | kilo grams | ||
Bramble will save | $ | per year |
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