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Suppose that you are a manager of a department, which uses 6000 boxes of rivets per year. The supplier quotes you a price of $10
Suppose that you are a manager of a department, which uses 6000 boxes of rivets per year. The supplier quotes you a price of $10 per box for an order size of 199 boxes or less, a price of $8 per box for orders of 200 to 999 boxes, and a price of $6 per box for an order of 1,000 or more boxes. You assign an annual holding cost of $2.5 per unit of inventory. Assume that ordering cost is $50/order. What is EOQ?
3000 units. | ||
b. 2000 units. | ||
c. 940 units. | ||
d. 490 units. | ||
e. 199 units. |
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