Economic Order Quantity Melchar Company uses 117,600.00 pounds of oats each year. The cost of placing an order is $15, and the carrying cost for one pound of oats is $0.45. Required: 1. Compute the economic order quantity for oats. If required, round your answer to the nearest whole number pounds 2. Compute the carrying and ordering costs for the EOQ. If required, round your answers to the nearest cent. Carrying cost Ordering cost
Economic Order Quantity Melchar Company uses 117,600.00 pounds of oats each year. The cost of placing an order is $15, and the carrying cost for one pound of oats is $0.45. Required: 1. Compute the economic order quantity for oats. If required, round your answer to the nearest whole number pounds 2. Compute the carrying and ordering costs for the EOQ. If required, round your answers to the nearest cent. Carrying cost Ordering cost
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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