Question

if EOQ=300units, order cost are $5 per order, and carying cost are $.20 per unit, what is the usage in Unit.
a) what is the total demand
b)what is thr number of order per year
c) compute the average annual odering cost
d) compute the average inventory
e) what is the avarage annual carying cost
f)compute the total cost​

Answer 1

Step-by-step explanation:

EOQ = SQRT (2 × Annual Demand × Ordering Cost Per Unit / Carrying Cost Per Unit) ...... Accordingly;360=SQRT((2×5×(s))/2) ..... (360×360)×.2=10 × S ... hence usage in unites is 2592