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2. PC Calculators sell calculators that it purchases for $15 each. It costs PC $60 each...

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Finance

2. PC Calculators sell calculators that it purchases for $15each. It costs PC $60 each time calculators are ordered, andcarrying costs are 20% of the calculator's purchase price. Annualdemand is 100,000 calculators. (a) Compute the EOQ. (b) Compute theinventory costs if PC orders are at (i) the EOQ amount, (ii) 1000calculators, (iii) 2500 calculators.

Answer & Explanation Solved by verified expert
3.6 Ratings (353 Votes)
Given Purchase price 15 Ordering cost 60 Carrying cost 20 15 3 a The formula for calculating the EOQ economic order quantity is EOQ 2 Annual demand cost of placing the order carrying cost 12 Now putting the given values in the above    See Answer
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Transcribed Image Text

2. PC Calculators sell calculators that it purchases for $15each. It costs PC $60 each time calculators are ordered, andcarrying costs are 20% of the calculator's purchase price. Annualdemand is 100,000 calculators. (a) Compute the EOQ. (b) Compute theinventory costs if PC orders are at (i) the EOQ amount, (ii) 1000calculators, (iii) 2500 calculators.

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