Moose sells dog bones that it purchases for $11 each. It costs Moose $50 each time bones are ordered, and carrying costs are 15% of the bones' purchase price. Annual demand is 75,000 dog bones. (a) compute EOQ (b) Compute th inventory costs if Moose orders (i) the EOQ amount, (ii) 1,000 bones, and (iii) 2,500 bones.
Moose sells dog bones that it purchases for $11 each. It costs Moose $50 each time bones are ordered, and carrying costs are 15% of the bones' purchase price. Annual demand is 75,000 dog bones. (a) compute EOQ (b) Compute th inventory costs if Moose orders (i) the EOQ amount, (ii) 1,000 bones, and (iii) 2,500 bones.
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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Moose sells dog bones that it purchases for $11 each. It costs Moose $50 each time bones are ordered, and carrying costs are 15% of the bones' purchase price. Annual demand is 75,000 dog bones. (a) compute EOQ (b) Compute th inventory costs if Moose orders (i) the EOQ amount, (ii) 1,000 bones, and (iii) 2,500 bones.
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