EBK PEARSON ETEXT PRINCIPLES OF MANAGER
EBK PEARSON ETEXT PRINCIPLES OF MANAGER
15th Edition
ISBN: 9780136846901
Author: SMART
Publisher: VST
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Chapter 15, Problem 15.5P

Learning Goal 3

P15-5 EOQ analysis Tiger Corporation purchases 1,400,000 units per year of one component. The fixed cost per order is $55. The annual carrying cost of the item is 27% of its $10 cost.

  1. a. Determine the EOQ if (1) the conditions stated above hold, (2) the order cost is S 1 rather than $55, and (3) the order cost is $55 but the carrying cost is $0.01.
  2. b. What do your answers illustrate about the EOQ model? Explain.
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Chapter 15 Solutions

EBK PEARSON ETEXT PRINCIPLES OF MANAGER

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