Homework:Module 5: Ch 9 (HW)

Question 9, Problem 12

HW Score: 21.62%, 8 of 37 points

Points: 0 of 3

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Part 1

A company orders a product from an outside supplier. The annual demand for the product is

66,500

units, and each time an order is placed the company incurs an ordering cost of

$124.

The company's annual carrying charge is

24%

of the item's cost of

$245

per unit. What order quantity minimizes the company's total annualized inventory-related costs?

Part 2

The economic order quantity is

enter your response here

units. (Enter your response rounded to the nearest whole number.)