Overland has a part with a unit cost of $40. It costs $52 to place, process, and receive an order. The carrying cost of the inventory is approximately 20% of the part's peso value per year. The firm uses 2000 of the parts each year. What order quantity minimizes total inventory cost?

Answer rating: 100% (QA)

The formula for Economic Order Quantity is Q 2AO... View the full answer