Question: Timberama is considering its inventory policy regarding timber needed for its sawmill. They have collected the following information regarding the one particular type of timber

  • Timberama is considering its inventory policy regarding timber needed for its sawmill. They have collected the following information regarding the one particular type of timber it needs: Demand = 36 000 Carrying cost = $6.00 Order cost = $25.00 p = 200 d = 75
  •  a) What is their economic order quantity (EOQ)?
  •  b) What is their total stocking cost at the EOQ? rate at which units are used out of inventory (units per time period) rate at which units are supplied to inventory (units per time period)

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