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Management Studies

Suppose that your company supplies toothpaste to Wal-Mart, and they are your only customer. Wal-Mart orders its EOQ of 1,000 tubes each time they order. The annual demand for these tubes is 40,000 units. Your setup cost is $100 per order, and your annual holding cost is $0.50 per unit. What is your optimal order quantity and the associated annual total cost? (Hint: it is a B2B business environment.)

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91766321

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