Question 2

WingCC company is a manufacturer of home and office furniture. One component the

company purchases from a supplier is lock, and its ordering quantity is 150, obtained from

EOQ with the minimum total cost of ordering cost and holding cost (excluding purchase cost,

no shortage cost is allowed). The company estimates its EPP as 2, and the problem to the

company is that the lock is sold at boxes from the supplier (each box contains 100 locks).

Q2: Should the company buy 1 box (with 100 locks) or two boxes (with 200 locks) each

time? What is your recommendation?

(Notice: Show your steps in detail in this question)