Solution 7_33 - N/Q = 19.36 Only if we expect to use green...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 7 Question 33 Carrying Cost Interest Cost $4 5% $0.20 per can per year Other carrying cost $0.30 per can per year C = Carrying cost per unit $0.50 per can per year O = Ordering Cost $20.00 per order N = Cans purchased per year 30,000 cans Q* = 1549.19 cans per order
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: N/Q = 19.36 Only if we expect to use green beats for one year. there will be 19 one year and 20 the other CC = C x Q/2 = CQ/2 = $387.30 OC = O x N/2 = ON/2 = $387.30 TC = CC + OC = $774.60 CC = 7,500 OC = 20.00 TC= 7,520...
View Full Document

Ask a homework question - tutors are online