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Ergonomics Inc. sells ergonomically designed office chairs. The company has the following information: Average demand =20 units per day Average lead time =30 days Item
Ergonomics Inc. sells ergonomically designed office chairs. The company has the following information: Average demand =20 units per day Average lead time =30 days Item unit cost =$50 for orders of less than 200 units Item unit cost =$48 for orders of 200 units or more Ordering cost =$25 Inventory carrying cost =25% The business year is 250 days Assume there is no uncertainty at all about the demand or the lead time. a. Calculate EOQ if unit cost is $50 and $48. (Note: These EOQs do not need to be feasible in their price range.) (Round up your answers to the next whole number.) Answer is complete but not entirely correct
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