Question: Rafael turns to Michelle and asks, What order quantity do you recommend we use for this product? Remember, we only ship in case quantities. To
Rafael turns to Michelle and asks, What order quantity do you recommend we use for this product? Remember, we only ship in case quantities.
To determine the order quantity for Listerine Cool Mint ml we need to consider the economic order quantity EOQ formula:
Economic Order Quantity sqrt x demand x ordering cost holding cost x demand x ordering Cost
We need to calculate the demand for one year:
The average weekly sales units
No of weeks in a year
Annual demand Average weekly sales Number of weeks in a yeartimes
EOQ x x $ x $
Demand units
Ordering Cost $
Holding Cost$
x x xx
Listerine Cool Mint ml is units,
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