The sales of a popular mouthwash at Merkle Pharmacies over the past 6 months have averaged 1,700
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Question:
Questions
1. What is the minimum-cost economic order quantity? Round your answer to the nearest whole number.
2. What is the annual ordering cost based on the minimum-cost economic order quantity? Use the rounded EOQ value in your calculations. Round your answer to the nearest cent.
3. What is the annual inventory holding cost based on the minimum-cost economic order quantity? Use the rounded EOQ value in your calculations. Round your answer to the nearest cent.
4. What is the total annual cost based on the minimum-cost economic order quantity? Use the rounded EOQ value in your calculations. Round your answer to the nearest cent.
5. What are the total cost savings in absolute terms caused by using the minimum-cost economic order quantity instead of the current purchasing policy of Q = 1,700? Use the rounded EOQ value in your calculations. Round your answer to the nearest cent.
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
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