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PharmaMart sells 100.000 boxes of a drug, Zapacal, annually. Each box costs $90 each. Costs to prepare and receive each shipment are estimated to be
PharmaMart sells 100.000 boxes of a drug, Zapacal, annually. Each box costs $90 each. Costs to prepare and receive each shipment are estimated to be $30 per shipment. The Supplier charges a shipping and handling fee of $100 per shipment. To ensure that the shipment meets quality, each shipment is tested at a cost of $50. The carrying costs (utilities and cost of financing) to store the inventory in the warehouse is estimated to be $3.3 per box. What is the Economic Order Quantity (EOQ)? Enter only numbers: boxes
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