You are managing a company that stocks and distributes hardware. The company employs two purchasing agents who

Question:

You are managing a company that and distributes hardware. The company employs two purchasing agents who receive combined salaries of $90,000. They process six thousand purchase requests per year. Average inventory in storage is $600,000, and the total cost of running the warehouse is $200,000. You are told that the company purchases five thousand hammers per year at a cost of $5.34 per hammer.
a. Using the EOQ formula, how many hammers should be ordered at one time?
b. If the hammer vendor stated that it would charge $5.00 per hammer if you ordered two hundred or more at a time, what would you do? Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...