A rodent infestation has left a landlord with a major cleanup job; in fact, the cleanup will consist of ripping out all the walls and ceilings of an 1860 square foot house to replace them. A trip to the local home improvement store reveals that 4'x8' sheets of drywall have three price points as indicated in the table. Another consideration for the landlord is that he is equipped with only a humble half-ton pickup truck, that can hold at most 20 sheets. His truck sips fuel, so he considers only wear and tear on his vehicle at $5 to haul all the sheets he will use for the job. The holding percentage is 20%. The landlord believes the entire job — all walls and ceiling — will require 10,080 square feet of drywall.

Purchase Quantity	Price Per Sheet
1-20	$9.40
21-100	$9.30
101 or more	$9.20

Use the information in Scenario above to determine the EOQ.

Answer rating: 100% (QA)

To determine the Economic Order Quantity EOQ we need to find the quantity that minimizes the total c... View the full answer