A produce distributor uses 787 packing crates a month, which it purchases at $10 each. The manager has assigned an annual carrying cost of 36 percent of the purchase price per crate. Ordering costs are $28. Currently the manager orders once a month.

1) What is the total cost of ordering and carrying crates, given that the manager orders once a month? (Round your answer to the nearest whole number.) 

2) What is the EOQ? (Round your answer to the nearest whole number.) 

3) What's the total cost of ordering and carrying crates for ordering at EOQ? (Round your answer to the nearest whole number.) 

4) How much could the firm save annually in ordering and carrying costs by using the EOQ? (Round your answer to the nearest whole number.)

Answer rating: 100% (QA)

The detailed answer for the above question is provided below To answer these questions we need to calculate various costs and the Economic Order Quant... View the full answer