Kallsen has calculated its economic order quantity at 200 units. The ordering cost is $ 40 and

Question:

Kallsen has calculated its economic order quantity at 200 units. The ordering cost is $ 40 and the carrying cost is $ 6. The carrying cost is $6. What is the expected demand for the year?

Economic Order Quantity
Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs. This production-scheduling model was developed in 1913 by Ford W. Harris and has...