Question: McDuff Enterprises has a SKU: 1 2 3 4 5 6 7 that has following inventory related data: The working assumption is that there is

McDuff Enterprises has a SKU: 1234567 that has following inventory related data: The working assumption is that there is even demand throughout, so carrying costs are applied to 50% of the order size. Weekly demand is 53 units; order cost is $180; item value is $1500; and carrying costs are 27% of the item value.
If we place one order peryear, calculate the Total cost of carrying the inventory?
If we place one order perweek, calculate the Total cost of carrying the inventory?
What would be the EOQ?
Based on this EOQ, what would the total costs of Inventory be?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!