Problema produce distributor uses 760 packing crates a, Ask an Expert

Management Studies

Problem:

A produce distributor uses 760 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.

Required:

Question 1) How much could the firm save annually in ordering and carrying costs by using the EOQ? Solve the problem and show all work.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91167426

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