Question: (Total 4 marks) Question Two (2b) A Company uses 50,000 widgets per annum, which are $10.00 each to purchase. The ordering and handling cost are

(Total 4 marks)

Question Two (2b)

A Company uses 50,000 widgets per annum, which are $10.00 each to purchase. The ordering and handling cost are $150.00 per order and the carrying cost are 15% of the purchase price per annum, i.e. it costs $1.50 per annum to carry a widget in stock.

i.Calculate the EOQ

Formula

EOQ =

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