Eoq analysis tiger corporation purchases 1160000 units per, Ask an Expert

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EOQ analysis Tiger Corporation purchases 1,160,000 units per year of one component.

The fixed cost per order is $24. The annual carrying cost of the item is 25.3% of

its $2.46 cost.

a. Determine the EOQ if (1) the conditions stated above hold, (2) the order cost is 0 rather than $24, and (3) the order cost is $24 but the carrying cost is $0.01.

b. What do your answers illustrate about the EOQ model? Explain.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91825894

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