Sam is a new inbound planning analyst at his company. One of the items he manages...

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Sam is a new inbound planning analyst at his company. One of the items he manages has an annual demand of 200,000 units per year. The cost of the item is $75/unit. The carrying cost (W) is 20% and the ordering cost is $250. The supplier offers a discount of 2% if they buy 5,000 units per order. What is the EOQ for this item based on the current costs? It must be purchased in layers of 10 so round to the nearest "10" Based on the price discount offered by the supplier. If you consider the annual costs for ordering, inventory and purchasing the item should Sam adjust his order quantity to 5,000? EOQ = 2,580; Yes order 5,000/order EOQ = 2, 580; No stick with the EOQ EOQ = 1,830; Yes order 5,000/order EOQ = 1,830; No stick with the EOQ Sam is a new inbound planning analyst at his company. One of the items he manages has an annual demand of 200,000 units per year. The cost of the item is $75/unit. The carrying cost (W) is 20% and the ordering cost is $250. The supplier offers a discount of 2% if they buy 5,000 units per order. What is the EOQ for this item based on the current costs? It must be purchased in layers of 10 so round to the nearest "10" Based on the price discount offered by the supplier. If you consider the annual costs for ordering, inventory and purchasing the item should Sam adjust his order quantity to 5,000? EOQ = 2,580; Yes order 5,000/order EOQ = 2, 580; No stick with the EOQ EOQ = 1,830; Yes order 5,000/order EOQ = 1,830; No stick with the EOQ

Answer rating: 100% (QA)

The Economic Order Quantity EOQ model helps to find the optimal order quantity that minimizes the total inventory costs The basic EOQ formula is EOQ s... View the full answer