An auto parts shop carries an oil filter for trucks. The annual demand for the oil filter is roughly 1200 units. The ordering cost per order for the auto parts shop is $80; the holding cost of carrying 1 unit is $1.2 per year. The shop has 360 working days per year. The lead time is usually 12 working days.

Determine the economic order quantity.

Answer rating: 100% (QA)

The Economic Order Quantity EOQ is the optimal quantity that a company should order to minimiz... View the full answer