Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Using the Economic Order Quantity ( EOQ ) formula from the Contemporary Logistics textbook ( Ch . 8 ) , calculate the EOQ in units

Using the Economic Order Quantity (EOQ) formula from the Contemporary Logistics textbook (Ch.8), calculate the EOQ in units using the following variables. Round your answer to the nearest whole number.
Annual usage (dollars)= $5000
Annual demand (units)=1153
Administrative cost per order of placing the order = $18
Dollar value of inventory (per unit)= $5
Carrying costs of the inventory (the annual percentage of the inventory dollar value)=12%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Project Management The Managerial Process

Authors: Erik W. Larson, Clifford F. Gray

7th edition

1260547272, 1259666093, 9781260547276, 978-1259666094

More Books

Students also viewed these General Management questions