Carter Company orders 250 units at a time, and places 15 orders per year. Total ordering cost is $1,100 and total carrying cost is $1,750. Which of the following statements is true? The economic order quantity (EOQ) is more than 250. None of these. The economic order quantity (EOQ) is less than 250. Total inventory-related cost is lower than it would be at the economic order quantity (EOQ). The economic order quantity (EOQ) is 250.
Carter Company orders 250 units at a time, and places 15 orders per year. Total ordering cost is $1,100 and total carrying cost is $1,750. Which of the following statements is true? The economic order quantity (EOQ) is more than 250. None of these. The economic order quantity (EOQ) is less than 250. Total inventory-related cost is lower than it would be at the economic order quantity (EOQ). The economic order quantity (EOQ) is 250.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints
Section: Chapter Questions
Problem 8E: Melchar Company uses 78,125 pounds of oats each year. The cost of placing an order is 18, and the...
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Carter Company orders 250 units at a time, and places 15 orders per year. Total ordering cost is $1,100 and total carrying cost is $1,750. Which of the following statements is true?
The economic order quantity (EOQ) is more than 250.
None of these.
The economic order quantity (EOQ) is less than 250.
Total inventory-related cost is lower than it would be at the economic order quantity (EOQ).
The economic order quantity (EOQ) is 250.
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