A small boat manufacturer obtains rudders from a single supplier, one

per boat. Demand is constant and the target is to sell 1200 boats through

their internet site per year. The estimated cost of ordering rudders is 15

each time an order is placed and the annual cost of holding inventory is

20% of the purchase cost. Given that the company buys the rudders at

200 each, calculate the economic order quantity and the total annual

cost of the rudders

Answer rating: 100% (QA)

To calculate the Economic Order Quantity EOQ and the total annual cost of rudders for the bo... View the full answer