Tiger corporation purchases 1180000 units per year of one, Ask an Expert

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Tiger Corporation purchases 1,180,000 units per year of one component. The fixed cost per order is ?$22

The annual carrying cost of the item is 26.1?% of its ?$1.77 cost.

a. Determine the EOQ if (1) the conditions stated above? hold, (2) the order cost is zero rather than ?$22 and? (3) the order cost is ?$22 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.:- M92865122

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