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Mungo Pet Supplies Makes Cat Trees for Several Pet Store

question 37

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Mungo Pet Supplies makes cat trees for several pet store chains. They order rolls of carpet (used to cover the trees) from a supplier. Mungo's management has decided to use an EOQ model. The annual demand for carpet is estimated to be 1,000 rolls. The purchase price per roll is $20 and estimated inventory carrying cost rate is 25%. The cost to place an order from the supplier is $30. What is the optimal order quantity?

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System Clock

A timing device within a computer that synchronizes and governs the timing of all computer operations.

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A type of memory that requires power to maintain the stored information; it loses its data when power is turned off.

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