Set up the Economic Order Quantity model given the information below. Annual Demand 50,000 units Order Cost $150 per order Unit...

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Set up the Economic Order Quantity model given the informationbelow.
Annual Demand
50,000 units
Order Cost
$150 per order
Unit Cost
$100 per unit
Inventory Holding
15% of unit cost
What is the Economic Order Quantity of the product?
What is the total annual cost when EOQ is ordered each time?

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3.9 Ratings (463 Votes)

Given are following details Annual demand of bath towels D 175 month x 12 months 2100 Order placement cost Co 12 Annual unit inventory carrying cost Ch 27 of 250 0675 Optimal order quantity Square root 2 x Co x D Ch Square root 2 x 12 x 2100 0675 27325 273 See Answer

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Annual Demand	50,000 units
Order Cost	$150 per order
Unit Cost	$100 per unit
Inventory Holding	15% of unit cost