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v The Allianz Company produces a specialty wood furnitore product, and has the following information available concerning its inventory items Relevant ordering costs per purchase
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The Allianz Company produces a specialty wood furnitore product, and has the following information available concerning its inventory items Relevant ordering costs per purchase order $450 Relevant carrying costs per year for each package. Required annual return on investment 15% Required other costs per year $4 Annual demand is 30,000 packages per year. The purchase price per package is $50. 1. What is the economic order quantity? 2- What are the relevant total costs if 1.200 units are ordered each time? 3. How many deliveries will be required if the company orders 1,250 each time Step by Step Solution
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