EOQ analysis Tiger Corporation purchases 1,440,000 units per year of one component. The fixed cost per order is $5. The annual carrying cost of the item is 26.7% of its $10.41 cost. a. Determine the EOQ if (1) the conditions stated above hold, (2) the order cost is $1.00 rather than $55, and (3) the order cost is $55 but the carrying cost is $0.01. b. What do your answers illustrate about the EOQ model? Explain. a. (1) If there are no changes in the costs, the EOQ is units. (Round to the nearest integer. For infinity, input INF)
EOQ analysis Tiger Corporation purchases 1,440,000 units per year of one component. The fixed cost per order is $5. The annual carrying cost of the item is 26.7% of its $10.41 cost. a. Determine the EOQ if (1) the conditions stated above hold, (2) the order cost is $1.00 rather than $55, and (3) the order cost is $55 but the carrying cost is $0.01. b. What do your answers illustrate about the EOQ model? Explain. a. (1) If there are no changes in the costs, the EOQ is units. (Round to the nearest integer. For infinity, input INF)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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EOQ analysis Tiger Corporation purchases 1,440,000 units per year of one component. The fixed cost per order is $55. The annual carrying cost of the item is 26.7%
of its $10.41 cost.
a. Determine the EOQ if (1) the conditions stated above hold, (2) the order cost is $1.00 rather than $55, and (3) the order cost is $55 but the carrying cost is $0.01.
b. What do your answers illustrate about the EOQ model? Explain.
ts
a. (1) If there are no changes in the costs, the EOQ is
units. (Round to the nearest integer. For infinity, input INF)
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