The company works 250 days per year. the lead time is four, Ask an Expert

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Sweet Scent Company manufactures scented wax pellets. The company buys wax in 100-pound containers that cost $15 each. They use 20,000 containers per year, and usage occurs evenly throughout the year. The average cost to carry a 100-pound container in inventory per year is $2, and the cost to place an order is $10. The company works 250 days per year. The lead time is four working days and the average rate of usage is 80 containers per day.

a. What is the economic order quantity?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M953462

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