# 2.2.docx - 2.2 Calculate the economic reorder quantity[Uh 3...

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Unformatted text preview: 2.2 Calculate the economic reorder quantity. [Uh]. 3] The West Lake Corporation has determined that the costto place an order foraluminum couplings is \$5 and the costto carry this item in inventory is \$8. If 8,000 couplings are required for production each year, calculate the economic order quantity [E00]. cost to order 2 55 cost to carry an item in inventory: \$0 EDD: Ii 2*annual reguirement*cost of an order requires 2 0,000 cost to carry a single item EDD: 2*0000*5 El EDD: 00000 El EOQ=|l 10000 EDD: 100 ...
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• Spring '18
• Cost Accounting, \$5, \$0, West Lake Corporation, economic reorder quantity

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