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Healthy Glow Juices expects to sell 40,000 cases of celery juice this year. Carrying costs are $14.00 per case per year with ordering costs of
Healthy Glow Juices expects to sell 40,000 cases of celery juice this year. Carrying costs are $14.00 per case per year with ordering costs of $28.00 per order. The company sells its juice at a constant rate every day throughout the year, and keeps 120 cases on hand as safety stock. Round all amounts to the nearest unit or dollar. 250 EOQ= a. Calculate the number of cases in the most economic order quantity (EOQ). (2 marks) b. Calculate the number of orders that will be placed in the year. (1 mark) C Calculate the average inventory on hand. (1 mark) d. Calculate the total ordering cost and carrying cost for the year. (2 marks)
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