Firm Tezla produces the product QuickCar. Annual demand for QuickCar is 600 units per year on a continuous basis. The product has inventory holding costs of $30 per unit per year and order costs of $300 per order. It takes 30 days to receive a shipment after an order is placed. Calculate the economic Order quantity (EOQ). a. 77 units b. 110 units c. 60 units d. 44 units

Practical Management Science
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Firm Tezla produces the product QuickCar. Annual demand for QuickCar is 600 units per year on a
continuous basis. The product has inventory holding costs of $30 per unit per year and order costs of
$300 per order. It takes 30 days to receive a shipment after an order is placed. Calculate the economic
order quantity (EOQ).
a. 77 units
b. 110 units
c. 60 units
d. 44 units
Transcribed Image Text:Firm Tezla produces the product QuickCar. Annual demand for QuickCar is 600 units per year on a continuous basis. The product has inventory holding costs of $30 per unit per year and order costs of $300 per order. It takes 30 days to receive a shipment after an order is placed. Calculate the economic order quantity (EOQ). a. 77 units b. 110 units c. 60 units d. 44 units
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