Diagnostic supplies has expected sales of 84,100 units per year, carrying costs of $5 per unit, and an ordering cost of $10 per order.

a. what is the economic ordering quantity?

Question

Ashlee Carroll

Business

15 July, 06:06

Diagnostic supplies has expected sales of 84,100 units per year, carrying costs of $5 per unit, and an ordering cost of $10 per order.

a. what is the economic ordering quantity?

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Answers (1)

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Schmidt · Answer 1

Using the equation for Economic order quantity

(EOQ) = √ (2 S O / C)

where S = 84,100, O = $10 per order, C = $5 per unit. Substituting the given values to the equation, we get:

EOQ = √ (2 * 84,100194,400 * 10 / 5) = 580

Therefore, the economic ordering quantity is 580 units

Diagnostic supplies has expected sales of 84,100 units per year, carrying costs of $5 per unit, and an ordering cost of $10 per order.a. what is the economic ordering quantity?

Diagnostic supplies has expected sales of 84,100 units per year, carrying costs of $5 per unit, and an ordering cost of $10 per order.

a. what is the economic ordering quantity?