Assume That Fashion Clothiers Inc

question 4

Multiple Choice

Assume that Fashion Clothiers Inc. uses 1,440,000 yards of material each year. Further, assume that Fashion can order the material at a cost of $2 per yard, plus fixed ordering costs of $100 per order. The firm's carrying cost is 20 percent of the inventory value, at cost.
-What is the firm's EOQ?

• A) 26,833
• B) 30,040
• C) 43,987
• D) 13,563
• E) 21,456