What is EOQ?
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...
Related questions
Question

Transcribed Image Text:Description:
Asfand Pvt Ltd. is working as a distributor for a renowned tire company in Punjab. Next year,
the company expects to sell 19,200 steel-belted radial tires of a certain size and tread design.
The annual carrying cost is Rs 1600 per tire, and the ordering cost is Rs 7500.
Questions:
Based on the above information, you are required to calculate the following:
A. What is EOQ?
B. How many times a year the store needs to re-order.
C. What is the total annual cost if an EOQ quantity is ordered?
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