A manufacturer buys cardboard boxes from a supplier the, Ask an Expert

Management Studies

A manufacturer buys cardboard boxes from a supplier. The annual demand is 36,000 boxes and is uniformly distributed. The boxes cost is $4. Each. The estimated order cost is $6, and the carrying cost is 30% per year.

What are the EOQ, and the annual order and carrying cost?

How many times a year are orders placed, and what is the average time, in weeks, between orders?

Using the answer from, if you round the average time between orders to the nearest week, what should the order quantity be?

Would you recommend using this order quantity and time interval?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92687429

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