You are given the following information:
- Annual demand: 2800 units
- Cost per order placed: $5.25
- Carrying cost: 20 percent
- Price per unit: $30
A. Fill in the blanks in the table below.
Order size
|
35
|
56
|
70
|
140
|
200
|
2800
|
Number of orders
|
-
|
-
|
-
|
-
|
-
|
-
|
Average Inventory
|
-
|
-
|
-
|
-
|
-
|
-
|
Carrying cost
|
-
|
-
|
-
|
-
|
-
|
-
|
Order cost
|
-
|
-
|
-
|
-
|
-
|
-
|
Total cost
|
-
|
-
|
-
|
-
|
-
|
-
|
B. What is the EOQ?