Melinda Sholer has spent the past few weeks determining inventory costs for Toco, a toy manufacturer located near Taos, New Mexico. She knows that the annual demand will be 20,000 units per year and that carrying cost will be $0.50 per unit per year. Ordering cost, on the other hand, can vary from $40 per order to $50 per order. During the past 486 working days, Melinda has observed the following frequency distribution for the ordering cost. Melinda's boss would like Melinda to determine an EOQ value for each possible ordering cost and to determine an EOQ value for the expected ordering cost.
ORDERING COST ($) FREQUENCY
40 ........... 24
41 .......... 34
42 .......... 44
43 .......... 56
44 .......... 76
45 .......... 66
46 .......... 64
47 .......... 45
48 .......... 44
49 .......... 23
50 .......... 10