Billy Ray is selling Skull Candy headphones on Ebay and orders his inventory from a wholesaler in
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Question:
Billy Ray is selling Skull Candy headphones on Ebay and orders his inventory from a wholesaler in Los Angeles.
These are the facts:
Demand is 10,000 per unit a year
Order costs are $40 per order
Carrying costs are .20 or 20%
Value per unit. is $100
Questions:
a. What is the Economic Order Quantity? (EOQ)
b. What is the total of carrying costs and order costs at the EOQ order amount?
Related Book For
Operations Management Processes And Supply Chains
ISBN: 9781292409863
13th Global Edition
Authors: Lee Krajewski, Naresh Malhotra, Larry Ritzman
Posted Date: