Question: Inventory Control: Economic Order Quantity EOQ ( 2 0 % ) : A large retailer of consumer electronic components buys flat screen TVs by the
Inventory Control: Economic Order Quantity EOQ :
A large retailer of consumer electronic components buys flat screen TVs by the pallet load. Each pallet contains boxes, one TV per box. Partial pallets can be ordered to round out order quantities. The retailer orders and sells Flat screen TVs per year. The cost accounting department has estimated that for the purchasing department to order and receive a shipment costs $ per order regardless of the size of the ordershipment The cost accounting department has also estimated that annual carrying costs are $ per DVD player.
What is the economic order quantity EOQ
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