Question
Jony furniture store examines its inventory policy and considers using an economic order quantity (EOQ) approach. They have the following information about a table
Jony furniture store examines its inventory policy and considers using an economic order quantity (EOQ) approach. They have the following information about a table set: Annual demand 3.920 sets 80 sets Current order quantity Carrying cost Order cost $80.00/set/year $200 a. What is the current total annual cost (TC)? [5 points] b. What is the economic order quantity (EOQ)? [5 points] c. What is the total annual cost at the economic order quantity (EOQ)? [5 points]
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Essentials Of Business Analytics
Authors: Jeffrey Camm, James Cochran, Michael Fry, Jeffrey Ohlmann, David Anderson, Dennis Sweeney, Thomas Williams
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