Question
Economic order quantity (EOQ). Tinnendo, Inc. believes it will sell million zen-zens, an electronic game, this coming year. Note that this figure is for annual
Economic order quantity (EOQ). Tinnendo, Inc. believes it will sell 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 times over the next year. The carrying cost is $ per zen-zen per year. The order cost is $ 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 carring cost for the zen-zens? (round to the nearest dollar) What is th annual ordering cost for the zen-zens? What is the optimal order quantity for the zen zens? At the EOQ, what is the new total inventory cost?
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