Question

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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