Dave's Fish Market (DFM) is open 12 months of the year. At DFM, the demand for fish is a very consistent 500 pounds per month. DFM orders the fish from a distributor in British Columbia at an ordering cost of $135 per order. Fish costs $9 per pound, and the annual carrying charge is 25%. What is the EOQ for DFM? What is the value of the average inventory How many orders should DFM place in a year? What would their total ordering costs be for a year?

Answer rating: 100% (QA)

To calculate the Economic Order Quantity EOQ for DFM we can use the following formula EOQ 2 Demand O... View the full answer