A manufacturing firm has the following estimates for its inventory: 100,000 oz. of silver (D) is...
- A manufacturing firm has the following estimates
for its inventory:
- 100,000 oz. of silver (D) is required for production each month
- Ordering Costs are $50.00/order (OC)
- Holding Costs are $1/oz. (HC)
- Calculate the EQQ based on the information;
- What’s the total cost at this EQQ units
Homework Answers
Economic order quantity= 10954
Total cost= 10954
demand given in monthly bases and so it converted into annual bases 100,000×12=1200000
Note= EOQ= Q
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A manufacturing firm has the following estimates
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