KraftyCity is a large retailer that sells power tools and other hardware supplies. One of its products

Question:

KraftyCity is a large retailer that sells power tools and other hardware supplies. One of its products is the Krafty Man workbench. Information on the workbench is as follows:
Annual demand = 1,200
Holding cost = +15 per year
Ordering cost = +200 per order
What is the for the workbench?

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...