Pop Top Corp. purchases rolls of aluminum and then molds the rolls into cans. They use...
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Pop Top Corp. purchases rolls of aluminum and then molds the rolls into cans. They use 50 rolls of aluminum per month in their processes. The rolls are purchased at $36.00 per roll and the annual cost to store a roll is estimated to be 10% of the purchase price. The ordering cost is $50 per order and the company has been placing orders for 200 rolls when resupplying. a. Determine the EOQ, rounded to the nearest roll. t b pub inneo ioobate o eovng w EOQ = b. How much money will be saved if Pop Top Corp. orders the EOQ amount instead of 200? Pop Top Corp. purchases rolls of aluminum and then molds the rolls into cans. They use 50 rolls of aluminum per month in their processes. The rolls are purchased at $36.00 per roll and the annual cost to store a roll is estimated to be 10% of the purchase price. The ordering cost is $50 per order and the company has been placing orders for 200 rolls when resupplying. a. Determine the EOQ, rounded to the nearest roll. t b pub inneo ioobate o eovng w EOQ = b. How much money will be saved if Pop Top Corp. orders the EOQ amount instead of 200?
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a ANNUAL DEMAND 600 ORDERING COST 50 HOLDING COST 36 EOQ ... View the full answer
Related Book For
Finance Applications and Theory
ISBN: 978-0077861681
3rd edition
Authors: Marcia Cornett, Troy Adair
Posted Date:
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