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Sagot :
Answer:
a. Optimal order quantity = 2,600 boxes
b. Number of orders per year = 6.16 orders per year
Explanation:
a. Determine the optimal order quantity. (Round your answer to the nearest whole number.)
D = Annual demand = 16,025
O = Ordering cost = $97
C = Carrying costs = 46 cents, or $0.46
Optimal order quantity = Economic order quantity = ((2 * D * O) / C)^0.5 = ((2 * 16,025 * 97 ) / 0.46)^0.5 = 2,600 boxes
b. Determine the number of orders per year. (Round your answer to 2 decimal places.)
Number of orders per year = Annual demand / Economic order quantity = 16,025 / 2,600 = 6.16 orders per year
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