A service garage uses 1600 boxes of cleaning cloths a year. Ordering cost is $30 and the

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A service garage uses 1600 boxes of cleaning cloths a year. Ordering cost is $30 and the holding cost is $0.6 on an annual basis. Please compute the following using the EOQ model.

a. The economic order quantity based on EOQ model?

b. The total cost of ordering and carrying.

c. Suppose the current order size is 200. What additional annual cost is the company incurring by staying with the order size 200.

Related Book For answer-question

Managerial Accounting A Focus on Ethical Decision Making

ISBN: 978-0324663853

5th edition

Authors: Steve Jackson, Roby Sawyers, Greg Jenkins

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Posted Date: Oct 25, 2019 11:05 AM

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A service garage uses 1600 boxes of cleaning cloths a year. Ordering cost is $30 and the

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Given Data Annual Demand D 1600 Holding cost H 06 Setup cost K ... View the full answer

Managerial Accounting A Focus on Ethical Decision Making

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