Demand for an item is projected to be 210 units per month. The monthly holding costs is $3 per unit and it costs $40 process an order A) Determine
View the step-by-step solution to:

Question

Demand for an item is projected to be 210 units per month. The monthly holding costs is $3 per unit and it costs

$40 process an order

A) Determine the EOQ ??


EOQ ?


B-1) If the vendor is willing to offer the manager a discount of $4 per order for ordering in multiples of 50 units(eg. 50,100) would you advise the manager to take advantage of the offer?


Yes or no?


B-2) If so, what order quantity would you recommend?

Top Answer

A) The Economic order quantity is 74.83 units. ... View the full answer

19614226.1.PNG

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question