Question: You recently started working at a sporting goods store. You purchased kayaks in quantities of 8. You estimate the cost of unloading a truck and
You recently started working at a sporting goods store. You purchased kayaks in quantities of 8. You estimate the cost of unloading a truck and putting the kayaks away to be $8 per order. The space consumed by each kayak is valued at $0.63 per month. You have leveraged selling 3 kayaks per week.
If you ordered in EOQ quantities instead of the current quantities, how much money would you save each year?
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