ABC Inc produces fertilizer to sell to wholesalers. One raw material: calcium nitrate is purchased from a

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ABC Inc produces fertilizer to sell to wholesalers. One raw material: calcium nitrate is purchased from a nearby supplier at $22.50 per ton. ABC Inc estimates it will need 5,750,000 tons of calcium nitrate next year.

The annual carrying cost for this material is 40% of the unit cost, and the ordering cost is $560.

What is the most economical order quantity? Round your answer to 2 decimal places.

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Basic Marketing A Marketing Strategy Planning Approach

ISBN: 978-0078028984

19th edition

Authors: William D. Perreault Jr., Joseph P. Cannon, E. Jerome McCarthy

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Posted Date: Mar 09, 2024 09:53 AM

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ABC Inc produces fertilizer to sell to wholesalers. One raw material: calcium nitrate is purchased from a

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Basic Marketing A Marketing Strategy Planning Approach

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