Problem 13.3 Blueline Manufacturing starts each period with 780 tennis rackets in stock and total yearly sales is 45 000 units. This sto ck is depleted each month and reordered. If the carrying cost per racket is $4, and the fixed order cost is $6. Is Blueline following an economically order size ntrotogu?

EBK CFIN
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ISBN:9781337671743
Author:BESLEY
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Chapter15: Managing Short-term Assets
Section: Chapter Questions
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What is the economic order size? (EOQ)
Additionally, find the Total cost, Average Inventory, and Order frequency

Problem 13.3
Blueline Manufacturing starts each period with 780 tennis rackets in stock and total yearly
sales is 45 000 units. This stock is depleted each month and reordered. If the carrying cost per
racket is $4, and the fixed order cost is $6. Is Blueline following an economically order size
strategy?
Transcribed Image Text:Problem 13.3 Blueline Manufacturing starts each period with 780 tennis rackets in stock and total yearly sales is 45 000 units. This stock is depleted each month and reordered. If the carrying cost per racket is $4, and the fixed order cost is $6. Is Blueline following an economically order size strategy?
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