Assume that a company uses 2000 units of an item each year, Financial Management

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Assume that a company uses 2000 units of an item each year

Assume that a company uses 2,000 units of an item each year; its order costs are $60 per order and carrying costs are $2 per unit per year. 15 days are required to receive an order once the order is placed, and it uses 8 units of inventory daily.

a. What is the economic order quantity (EOQ)?

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Financial Management: Assume that a company uses 2000 units of an item each year

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Financial Management: Assume that a company uses 2000 units of an item each year

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