Nelson stocks one of the most popular brands of these 19 volt cordless electric drills in the store. The annual demand is 5,000 units. The cost of issuing / preparing the order is $ 15 and the maintenance cost for one unit per year is $ 3.75. Required: What is the Economic Order Quantity (EOQ)? Calculate total inventory costs using the economic order quantity? Is ordering 600 units better?

Nelson stocks one of the most popular brands of these 19 volt cordless electric drills in the store. The annual demand is 5,000 units. The cost of issuing / preparing the order is $ 15 and the maintenance cost for one unit per year is $ 3.75. Required: What is the Economic Order Quantity (EOQ)? Calculate total inventory costs using the economic order quantity? Is ordering 600 units better?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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