Determine the Economic Order Quantity in Excel for: Price of Product: .........$150 Savings Rate: .........12% Annual Usage: ..........16240 Cost of

Question:

Determine the Economic Order Quantity in Excel for:

Price of Product: .........$150

Savings Rate: .........12%

Annual Usage: ..........16240

Cost of transportation: ......$200/order

Cost of PO preparation: .......$60/order

Warehouse Rental: ........$8/piece.

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...

This problem has been solved!


Do you need an answer to a question different from the above? Ask your question!

Step by Step Answer:

Related Book For  answer-question
View Solution
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes. * Average response time.
Question Posted: May 23, 2013 05:18:02