Question: Torque Manufacturing forecasts that its production will require 500,000 tons of bauxite over its planning period. Demand for Torque's products is stable overtime. Ordering costs
Torque Manufacturing forecasts that its production will require 500,000 tons of bauxite over its planning period. Demand for Torque's products is stable overtime. Ordering costs amount to an average of $20 dollars per order. Holding costs are estimated at $1.25 per ton of bauxite. The EOQ for Torque is: EOQ=v (2 x TxF) /h 6,000,000 tons 4,000 tons 5.6 tons 2,200 tons
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