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Author Question: An organization has had a policy of ordering 70 units at a time. Their annual demand is 340 units, ... (Read 40 times)

KWilfred

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Question 1

Holding costs are $35 per unit per year, the ordering cost is $120 per order, and sales are relatively constant at 300 per month. What is the optimal order quantity? What are the annual inventory management costs?

Question 2

An organization has had a policy of ordering 70 units at a time. Their annual demand is 340 units, and the item has an annual carrying cost of $2. The assumptions of the EOQ are thought to apply. For what value of ordering cost would this order size be optimal?


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Marked as best answer by KWilfred on Dec 3, 2019

batool

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KWilfred

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Reply 2 on: Dec 3, 2019
Great answer, keep it coming :)


kilada

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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