Mark Achin sells 3,600 electric motors each year. The cost of these is $200 each, and...

 

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Mark Achin sells 3,600 electric motors each year. The cost of these is $200 each, and demand is constant throughout the year. The holding cost is $20 per unit per year. There are 360 working days per year and the lead time is 5 days. Assuming that Mark orders 200 units (the EOQ) each time he places an order, what would be his total ordering cost per year? (a) $2,000 (b) $2,720 (c) $200 (d) $720 none of the above Mark Achin sells 3,600 electric motors each year. The cost of these is $200 each, and demand is constant throughout the year. The holding cost is $20 per unit per year. There are 360 working days per year and the lead time is 5 days. Assuming that Mark orders 200 units (the EOQ) each time he places an order, what would be his total ordering cost per year? (a) $2,000 (b) $2,720 (c) $200 (d) $720 none of the above

Answer rating: 100% (QA)

Annual demand 3600 units No of units ordered each time 200 unit... View the full answer