Question: Please help, thank you 1. [Economic Ordering Quantity (EOQ) Model] The soft goods department of a large department store sells 400 units per month of
Please help, thank you
1. [Economic Ordering Quantity (EOQ) Model] The soft goods department of a large department store sells 400 units per month of a certain large bath towel. The unit cost of a towel to the store is $12 and the cost of placing an order has been estimated to be $500 per order. The store uses an inventory carrying charge of $5 per unit per month. a. Determine the optimal economic order quantity (EOQ).
b. Compute the order frequency (= the number of orders per year).
c. Determine the annual inventory holding cost and annual ordering cost.
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