Respuesta :
Answer:
EOQ = ≅ 8
Explanation:
EOQ = √(2SD)/H
S = ordering cost per order = $5.0
H= Holding cost = $76
D= Annual Demand = 484 drums
EOQ = √(2 x 5 x 484 )/76
= √63.68
7.98
This implies that the optimal quantity that can be ordered for to minimize ordering and carrying cost is 8 drums per order.
Answer:
EOQ= 8 units.
Explanation:
Economic order quantity= sqrt{2DS}/h
where Q= EOQ units
D= demand in units
S= Order cost (per purchase order)
h= holding cost (per unit,per year)
h= Annual carrying cost: = 76 per drum
S=Ordering cost = $5 per order
D= Annual demand= 484 drums per year
Calculation: EOQ = sqrt{2* 484 * 5}/ 76
=sqrt(4840/76)
= 8 units
8 EOQ units where ordering cost and carrying are equal.
