Discount-Lighting(NZ), wants to determine the economic order quantity for its halogen lamps. It currently buys all halogen lamps from a major supplier in China. Annual demand is 2000 lamps, ordering cost per unit is $30, and annual carrying cost per lamp is $12.
What is the EOQ?
What are the total annual costs of holding and ordering (managing) this inventory?
How many orders should Discount-Lighting place with the suppliers each year?