Economic order quantity; tabular computation Chavez Chemical Inc. requires 20,000 gallo...

Economic order quantity; tabular computation

Chavez Chemical Inc. requires 20,000 gallons of material annually; the cost of placing an order is $20; the annual carrying cost per gallon is $5.

Required:

Determine the EOQ from potential order sizes of 300, 400, 500, 600, 700, and 800 gallons by constructing a table similar to the one appearing on page 71.

Reference: