Use the following information to determine the economic order quantity for Albert Company. Units required during the

Question:

Use the following information to determine the economic order quantity for Albert Company.

Units required during the year ........................................................20,000

Cost to place an order ..................................................................... $ 60

Cost of carrying a unit in inventory ................................................... $ 12

Economic Order Quantity
Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs. This production-scheduling model was developed in 1913 by Ford W. Harris and has...