Your familys house painting business has decided to try


Your family's house painting business has decided to try this "EOQ thing" you just learned in SCMS 3510. So you open the financials and note the following information: Three-year average paint consumption: 2545 gallons per year You use a small warehouse to hold your equipment and paint. From your cost accounting class, you estimate that your holding cost per gallon of paint is $2.40 per year. Buying the materials needed requires more time than you thought. The part-time person whose only function is to do all of your buying says that she processes 1230 purchase orders per year and her average pay has been $16600 per year. What is the total cost of one order if you order in quantities equal to the EOQ?

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