Fashion Clothiers Inc. Assume That Fashion Clothiers Inc. Uses 1,440,000 Yards of Material

question 146

Multiple Choice

Fashion Clothiers Inc.
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.
-Refer to Fashion Clothiers Inc.What is the firm's EOQ?

• A) 26,833
• B) 30,040
• C) 43,987
• D) 15,218
• E) 21,456

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