Tiger Corporation purchased 1,200,000 per year. Fixed cost is $22.per order Annual carrying cost is 26.8% of its $1.67.
Determine the EOQ if the conditions hold, the order cost is 0 instead of $22, the order cost is $22 but the carrying cost is $.01.
What do your answers illustrate about the EOQ model?
If there is no change in costs, the EOQ model is ---- units.