A local distributor for a packaging machine manufacture expects to sell approximately 10 000 machines . Annual
Fantastic news! We've Found the answer you've been seeking!
Question:
A local distributor for a packaging machine manufacture expects to sell approximately 10 000 machines . Annual carrying cost is $2500 per machine and order costs is $10 000.The distributor operates 300 days a year.
I. Using the above information determine the EOQ.
ii. How many times will the store need to reorder.
iii. Determine the length of the order cycle .
iv. What will be the Total Annual Cost if EOQ is ordered?
Related Book For
Intermediate Accounting
ISBN: 978-0071339476
Volume 1, 6th Edition
Authors: Beechy Thomas, Conrod Joan, Farrell Elizabeth, McLeod Dick I
Posted Date: