Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Economic order quantity (EOQ). Tinnendo, Inc. believes it will sell 4 million zen-zens, an electronic game, this coming year. Note that this figure is for

Economic order quantity (EOQ).  Tinnendo, Inc. believes it will sell 4 million zen-zens, an electronic game, this coming year.  Note that this figure is for annual sales.  The inventory manager plans to order zen-zens 38 times over the next year.  The carrying cost is $0.03 per zen-zen per year.  The order cost is $671 per order.  What are the annual carrying cost, the annual ordering cost, and the optimal order quantity for the zen-zens?  Verify your answer by calculating the new total inventory cost.

What is the annual carrying cost for the zen-zens? $ (Round to the nearest dollar.)

Step by Step Solution

3.40 Rating (153 Votes )

There are 3 Steps involved in it

Step: 1

Ans Expected sale in coning year 4000000 zen zens annual sales Inve... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Business Analytics

Authors: Jeffrey Camm, James Cochran, Michael Fry, Jeffrey Ohlmann, David Anderson, Dennis Sweeney, Thomas Williams

1st Edition

128518727X, 978-1337360135, 978-1285187273

More Books

Students also viewed these Finance questions