The Allianz Company produces a specialty wood furniture product, and has the following information available concerning its inventory items:
Relevant ordering costs per purchase order | $470 |
Relevant carrying costs per year for each package:
Required annual return on investment | 18% |
Required other costs per year | $5 |
Annual demand is 33,000 packages per year. The purchase price per package is $49.
What is the economic order quantity?
◦ 1875.37 units
◦ 1059.38 units
◦ 1498.19 units
◦ 2490.78 units