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The sales of mouthwash at MARKAL Pharmacy over the past 6 months have averaged 2,000 cases per month, which is the current order quantity. Markal's

The sales of mouthwash at MARKAL Pharmacy over the past 6 months have averaged 2,000 cases per month, which is the current order quantity. Markal's cost is $12.00 per case. The company estimates its cost of capital to be 12 percent. Insurance, taxes, breakage, handling, and pilferage are estimated to be approximately 6 percent of item cost. The cost of of placing an order is $38.00. What is economic order quantity? What is the total inventory cost under economic order quantity? Compare the total cost savings with the current purchase order of 2000 case per month. 

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To calculate the Economic Order Quantity EOQ we can use the following formula EOQ sqrt2 D S H Where ... blur-text-image

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