An Item Has an Annual Demand of $5,000, Preparation Costs

question 2

Short Answer

An item has an annual demand of $5,000, preparation costs of $20 per order, and a carrying cost of 20%. What is the EOQ in dollars?

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Definitions:

Business Process

A series of steps performed by a group of stakeholders to achieve a concrete goal, typically involving defining, measuring, analyzing, improving, and controlling processes.

Business-Format Franchising

A type of franchising in which the franchisee adopts the franchisor’s entire method of operation.

Fast-Food Restaurants

Eateries that specialize in providing quick service, convenience, and food that is prepared and served quickly to customers.

Late 1700s

A historical period referring to the decade of the 1790s, marking the end of the 18th century.