Question: EOQ Model - Example 2 A fruit distributor uses 800 packing crates a month, which it purchases at a cost of 10 OMR each. The

EOQ Model - Example 2 A fruit distributor uses

EOQ Model - Example 2 A fruit distributor uses 800 packing crates a month, which it purchases at a cost of 10 OMR each. The manager has assigned an annual carrying cost of 35%. Ordering costs are 28 OMR. Currently, the manager orders once a month. a) What is the current annual ordering and carrying cost (variable cost)? b) What advice would you give the manager, and how much savings could be achieved in the annual ordering and carrying costs

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