Question: Epworth Co predicts that it will use 360 000 gallons of

Epworth Co. predicts that it will use 360,000 gallons of material during the year. It anticipates that it will cost $72 to place each order. The annual carrying cost is $4 per gallon.
a. Determine the most economical order quantity by using the EOQ formula.
b. Determine the annual order and carrying costs at the EOQ point.

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  • CreatedMarch 31, 2015
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