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Dald Idule FSI Fine Sports (FS) operates a megastore featuring sports merchandise. It uses an EOQ decision model to make inventory decisions. It is now
Dald Idule FSI Fine Sports (FS) operates a megastore featuring sports merchandise. It uses an EOQ decision model to make inventory decisions. It is now considering inventory decisions for its Los Angeles Galaxy soccer jerseys product line. This is a highly popular item. Data for 2017 are as follows: (Click the icon to view the data.) Expected annual demand for Galaxy jerseys 9,000 Rel Ordering cost per purchase order $250 Carrying cost per year $$8 per jersey Requirement 1. Calculate the EOQ for the Galaxy jerseys using the revised ordering cost of $40 per purchase order. Comment on the result. Begin by selecting the formula used to calculate EOQ. (D = Demand in units for one year, P = Ordering cost per purchase order, C = Carrying cost of one Each jersey costs FS $45 and sells for $90. The $8 carrying cost per jersey per year consists of the required return on investment of $4.50 (10%
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