Question: EXAMPLE 2 - Computing and Using the EOQ excel A local distributor for a national tire company expects to sell approximately 9 , 6 0
EXAMPLE Computing and Using the EOQ
excel
A local distributor for a national tire company expects to sell approximately radial tires of a certain size and tread design next year. Annual carrying cost is $ per tire, and ordering cost is $ The distributor operates days a year.
a What is the EOQ?
b How many times per year does the store reorder?
c What is the length of an order cycle?
d What will the total annual carrying and ordering cost be if the EOQ quantity is ordered?
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