Moose sells dog bones that it purchases for $11 each. It costs Moose $50 each time bones are ordered, and carrying costs are 15% of the bones' purchase price. Annual demand is 75,000 dog bones. (a) compute EOQ (b) Compute th inventory costs if Moose orders (i) the EOQ amount, (ii) 1,000 bones, and (iii) 2,500 bones.
Moose sells dog bones that it purchases for $11 each. It costs Moose $50 each time bones are ordered, and carrying costs are 15% of the bones' purchase price. Annual demand is 75,000 dog bones. (a) compute EOQ (b) Compute th inventory costs if Moose orders (i) the EOQ amount, (ii) 1,000 bones, and (iii) 2,500 bones.
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
Problem 1PS
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Moose sells dog bones that it purchases for $11 each. It costs Moose $50 each time bones are ordered, and carrying costs are 15% of the bones' purchase price. Annual demand is 75,000 dog bones. (a) compute EOQ (b) Compute th inventory costs if Moose orders (i) the EOQ amount, (ii) 1,000 bones, and (iii) 2,500 bones.
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