Michael's Mechanical sells 6,000 jettison machines annually. Each machine costs Michael's $2,000 to purchase, inventory carrying costs are 36 percent of the purchase price, and the cost of placing an order with its supplier is $150. What is the EOQ? Round your answer to the nearest whole number. machines What is the total inventory cost at the EOQ level? Do not round intermediate calculations. Round your answer to the nearest dollar. $

Michael's Mechanical sells 6,000 jettison machines annually. Each machine costs Michael's $2,000 to purchase, inventory carrying costs are 36 percent of the purchase price, and the cost of placing an order with its supplier is $150. What is the EOQ? Round your answer to the nearest whole number. machines What is the total inventory cost at the EOQ level? Do not round intermediate calculations. Round your answer to the nearest dollar. $

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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Question

What is the EOQ? Round your answer to the nearest whole number.

machines
What is the total inventory cost at the EOQ level? Do not round intermediate calculations. Round your answer to the nearest dollar.

$

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