A manufacturer of electronic calculators requires 32,000 display units in a quarter; consumption is at a steady rate over the quarter. The cost of placing each purchase order for the display units is $1,920 while the cost of holding in inventory one display unit over the quarter is $3. What should be the Economic Order Quantity (EOQ) this factory should adopt during the quarter? Is there an optimizing technique to determine this? Draw the graph showing ordering costs, inventory holding costs and total costs to determine this.

Answer rating: 100% (QA)

Economic Order Quantity EOQ for the Manufacturer The manufacturer can optimize its inventory costs b... View the full answer