Vision Company sells optical equipment. Blitz Company manufactures special glass lenses. Vision orders 11,400 lenses per year, 200 per week, at $35 per lens. Blitz covers all shipping costs. Vision earns 25% on its cash investments. The purchase-order lead time is 2.5 weeks. Vision sells 225 lenses per week. The following data are available: Relevant ordering costs per purchase order $41.25 Relevant insurance, materials handling, breakage, and so on, per year $ 4.50 What is the minimum total cost achievable? A) $3530.25 B) $3,499.14 C) $3,534.50 D) $3536

Answer rating: 100% (QA)

Solution Minimum cost is achievable only at EOQ level EOQ 266 units then number of orde... View the full answer