Compute the eoq for plastic pellets if cranston used the, Financial Management

Compute the eoq for plastic pellets if cranston used the

One of Cranston’s principal raw materials is plastic pellets, which it purchases in lots of 100 pounds at $0.35 per pound. Annual consumption is 8,000,000 pounds. Within a broad range of order sizes, ordering and shipping costs are $120 per order. Carrying costs are $1.50 per year per 100 pounds. Compute the EOQ for plastic pellets. If Cranston used the EOQ model, how often would it order pellets?

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Financial Management: Compute the eoq for plastic pellets if cranston used the

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