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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.


Definitions:

Oliver North

A United States Marine Corps officer involved in the Iran-Contra affair during the Reagan administration.

Barry Goldwater

An American politician, businessman, and author who was a five-term Senator from Arizona and the Republican Party's nominee for President in 1964.

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