An Organization Has Had a Policy of Ordering 70 Units

question 93

Essay

An organization has had a policy of ordering 70 units at a time.Their annual demand is 340 units,and the item has an annual carrying cost of $2.The assumptions of the EOQ are thought to apply.For what value of ordering cost would this order size be optimal?

---

Definitions:

Satisfactory Solution

An outcome or resolution to a problem that meets the requirements or expectations to an acceptable level.

Competence

The quality of being competent; adequacy; possession of required skill, knowledge, qualification, or capacity.

Required Skill

A specific ability or expertise necessary to perform a job or task effectively.

Knowledge

Knowledge encompasses facts, information, and skills acquired through experience or education; the understanding of a subject.