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Problem

A produce distributor uses 770 packing crates a month, which it purchases at a cost of $10 each. The manager has assigned an annual carrying cost of 35 percent of the purchase price per crate. Ordering costs are $28. Currently the manager orders once a month.

How much could the firm save annually in ordering and carrying costs by using the EOQ?

(Round intermediate calculations and final answer to 2 decimal places. Omit the "tiny_mce_markerquot; sign in your response.)

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92759249

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