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Sandrington Ltd. operates a retail bicycle shop. Wheel covers are popular with customers. Sandrington purchases these covers for $48 per pair, and expects to sell
Sandrington Ltd. operates a retail bicycle shop. Wheel covers are popular with customers. Sandrington purchases these covers for $48 per pair, and expects to sell 5,000 pairs per year. Ordering costs are estimated at $180 per order and relevant insurance handling etc. costs are estimated at $3.60 per month. The company has established a 14% annual return on investment. The EOQ quantity for Sandrington is: O 707 units 0 2,449 units 0 24 units 0 418 units 0 506 units
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