Question
EOQ analysis Tiger Corporation purchases 1,160,000 units per year of one component. The fixed cost per order is $24. The annual carrying cost of the
EOQ analysis Tiger Corporation purchases 1,160,000 units per year of one component.
The fixed cost per order is $24. The annual carrying cost of the item is 25.3% of
its $2.46 cost.
a. Determine the EOQ if (1) the conditions stated above hold, (2) the order cost is
0 rather than $24, and (3) the order cost is $24 but the carrying cost is $0.01.
b. What do your answers illustrate about the EOQ model? Explain.
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Public School Finance Decoded
Authors: Jay C. Toland
1st Edition
1475827679, 978-1475827675
