Question
EOQ analysis Tiger Corporation purchases 1,200,000 units per year of one component. The fixed cost per order is $23. The annual carrying cost of the
EOQ analysisTiger Corporation purchases 1,200,000 units per year of one component. The fixed cost per order is $23. The annual carrying cost of the item is 25.1% of its $1.99 cost.
a. Determine the EOQ if (1) the conditions stated above hold, (2) the order cost is zero rather than $23 ,and (3) the order cost is $23 but the carrying cost is $0.01.
b.What do your answers illustrate about the EOQ model? Explain.
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Investing In Fixed Income Securities Understanding The Bond Market
Authors: Gary Strumeyer
1st Edition
0471465127, 9780471465126
