A Service Garage Uses 120 Boxes of Cleaning Cloths a Year.The

question 69

Essay

A service garage uses 120 boxes of cleaning cloths a year.The boxes cost $6 each.Ordering cost is $3 and holding cost is 10 percent of purchase cost per unit on an annual basis.
Determine:
(A) The economic order quantity
(B) The total cost of carrying the cloths (excluding purchase price)
(C) The average inventory

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Definitions:

Insects

A class of arthropods characterized by a three-part body (head, thorax, abdomen), three pairs of legs, compound eyes, and one pair of antennae.

Coleoptera

An order of insects known as beetles, characterized by their hard forewings (elytra) which cover the hind wings.

Arachnids

Land-dwelling arthropods with no antennae and four pairs of walking legs; spiders, scorpions, mites, and ticks.

Earthworms

Invertebrate animals belonging to the phylum Annelida, known for their role in aerating the soil and enhancing soil fertility.