Question

1.24 PM AIA Inc. is looking nm days in the year Each tr to the EO0? to manage its cash position using the EOQ model. The company is consuming cash at the rate of $5200 per day, and is open for business 365 er e irm sells securities to obtain the cash it costs them $230 lf he nterest rate is 2.60%, what is the optimal order amount according your answer to the nearest dollar without including a dollar sign or commas CHECK ANSWER Lt

Answer 1

Please provide rating..

EOQ = square root of (2* annual consumption*transaction cost/Interest rate)
Annual consumption		=5200*365	1898000
Transaction cost			230
Interest rate			2.60%
EOQ =			=square root of (2*1898000*230/2.6%)
EOQ =			183248