A company wishes to establish an EOQ for an item for which the annual demand is $800,000,
Question:
A company wishes to establish an EOQ for an item for which the annual demand is $800,000, the ordering cost is $32, and the cost of carrying inventory is 20%. Calculate the following:
a. The EOQ in dollars.
b. Number of orders per year.
c. Cost of ordering, cost of carrying inventory, and total cost.
d. How do the costs of carrying inventory compare with the costs of ordering?
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A 800000 S 32 i 20 a b Nu...View the full answer
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Related Book For
Introduction To Materials Management
ISBN: 978-9386873248
8th edition
Authors: Arnold J. R. Tony, Gatewood Ann K., M. Clive Lloyd N. Chapman Stephen
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