A Company Decides to Establish and EOQ for an Item

question 15

Essay

A company decides to establish and EOQ for an item. The annual demand is 400,000 units each costing $8 to run, setup costs are $32 , and inventory carrying costs are 20%. Calculate the cost or ordering, cost of carrying inventory, and total cost.

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Definitions:

Primary Purpose

The main intent or objective behind an action, project, or document.

Persuasive Messages

Communications designed to influence or convince the recipient to adopt a particular viewpoint or take action.

Deadlines

Predetermined dates or times by which tasks, projects, or assignments must be completed.

Indirect Requests

Requests made in a less straightforward manner, often intended to be polite or less imposing.