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Economic Order Quantity La Cucina Company sells kitchen supplies and housewares. Lava stone is used in production of molcajetes (mortars and pesties used in the
Economic Order Quantity La Cucina Company sells kitchen supplies and housewares. Lava stone is used in production of molcajetes (mortars and pesties used in the making of guacamole) and is purchased from external suppliers. Each year, 8,200 pounds of lava stone is used; it is currently purchased in lots of 500 pounds. It costs L Cucina $7 to place the order, and carrying cost is $2 per pound per year Required 1. What is the EOQ for lava stone? Round your answer to the nearest whale pound pounds 2. How many orders per year for lava stone will La Cucina place under the EOQ policy? Round your answer to the nearest whale order orders per year )3. What is the tota annual ordering cost of lava stone for a year under the EOQ policy? Round your answer to the nearest dollar is the total annual carrying cost of lava stome per year under the E0Q poliey? Round your answer to the nearest dollac S. What is the total aneual inventory.related cost for lava stone under the EOQ? oF
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