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Question 3 (6 points) Marathon Shoes Ltd, maintains an inventory of running shoes to meet its annual sales of 190,000 pairs. Carrying costs have been
Question 3 (6 points) Marathon Shoes Ltd, maintains an inventory of running shoes to meet its annual sales of 190,000 pairs. Carrying costs have been identified as $5.757 per package, while ordering costs were $4.500 per order. The firm currently places orders in quantities of 1,000 units per order. The firm's current total inventory costs are $3,733.50. 1. Use your knowleddge of EOQ analysis to determine how much the firm could save in total inventory costs (two decimals). 2. In words, fully explain what the EOQ tells the user. (Do not repeat the formula)
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