A company has the following inventory characteristics: Annual demand = 90,000 units; Ordering cost = $75/order; Holding cost = $0.15 per unit per day; Operating schedule = 45 weeks/year, 5 days/week. What is the EOQ and approximately how many orders will be placed each year?

Question

Answer

EOQ between 700–750 units; about 120–125 orders/year

Answer

EOQ between 500–550 units; about 160–165 orders/year

Answer

EOQ between 600–650 units; about 135–145 orders/year

Answer

EOQ between 800–850 units; about 110–115 orders/year

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A company has the following inventory characteristics: Annual demand = 90,000 un...

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