Question

a. What is the EOQ for a firm that sells 5,000 units when the cost of placing an order is $5 and the carrying costs are $3.50 per unit?
b. How long will the EOQ last? How many orders are placed annually?
c. As a result of lower interest rates, the financial manager determines the carrying costs are now $1.80 per unit. What are the new EOQ and annual number of objects?


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  • CreatedMarch 19, 2015
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