Question: Using the EOQ model, what is the total annual cost when the annual demand is 20,000 units, the cost to place an order is $80,

Using the EOQ model, what is the total annual cost when the annual demand is 20,000 units, the cost to place an order is $80, and the annual inventory holding or carrying cost is $12?

		$3,099
		$6,197
		$517
		$41,312

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

Q2. The Talbot Company uses electrical assemblies to produce an array of small appliances. One of its high cost / high volume assemblies, the XO-01, has an estimated annual demand of 8,000 units....

Questions 1-3 are based on the following information and the fixed order quantity w certainty formula (note, some of the information may be unimportant) Annual sales = 100,000 units Cost of capital =...

Wholesale Medical Supplies is a large medical supply store: The Everlast Gloves, a box of gloves is one of the items it sells. Each unit of Everlast Gloves costs Wholesale Medical Supplies $12. There...

A company is planning for its financing needs and uses the basic EOQ inventory model. What is the total annual cost (T) of the inventory given an annual demand of 45688 , order setup cost of $ 91 , a...

Stewart Corporation is a major automobile manufacturer. It purchases steering wheels from Coase Corporation. Annual demand is 10,400 steering wheels per year or 200 steering wheels per week. The...

A company is planning for its financing needs and uses the basic fixed - order quantity inventory model. What is the total annual cost ( T ) of the inventory given an annual demand of 3 4 5 3 9 ,...

A company is planning for its financing needs and uses the basic fixed - order quantity inventory model. What is the total annual cost ( T ) of the inventory given an annual demand of 4 5 7 7 2 ,...

A company is planning for its financing needs and uses the basic fixed - order quantity inventory model. What is the total annual cost ( T ) of the inventory given an annual demand of 4 1 6 9 4 ,...

Home Depot is a large hardware store located in Long Beach Mall: The Everlast Binder, a special purpose glue is one of the items it sells. Each unit of Everlast Binder costs Home Depot $12. There is...

Classify each of the following accounts as an asset (A), liability (L), or equity (EQ) account. a. Cash b. Prepaid Rent c. Office Supplies d. Prepaid Insurance e. Office Equipment f. Owner, Capital...

Suppose that we wish to analyze the U-tube oscillation flow of Fig P3.96, using the full continuity and Navier-Stokes equations. What are the proper boundary conditions to handle this problem? | |...

Question 6 2 Points Asker Inc. is an all - equity funded firm that is considering borrowing $ 1 billion at a market interest rate of 6 % . If the loan is a balloon payment loan for 1 0 years ( only...

Case Greenbuilders Pte Lid ("GPL") is a local construction company which specialises in providing bespoke Design and Build construction services for private residential homes that are designed to be...