A Company Decides to Establish and EOQ for an Item

question 11

Short Answer

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 number of orders per year.

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Definitions:

Intelligence

The ability to learn, understand, apply information, solve problems, and adapt to new situations.

Matrix Management

An organizational structure that assigns specialists from different functional departments to work on projects or tasks led by a project manager, creating a two-dimensional management system.

Executive Management

The highest-ranking officers and decision-makers in an organization, responsible for strategy and policy implementation.

Direct Report

An employee who reports directly to a particular manager or supervisor within an organizational hierarchy.