Calculate the economic order quantity

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Reference no: EM13254143

The current order quantity for Paul's Pasta Pinwheels is 200 boxes. The order cost is $4 per order, the holding cost is $0.40 per box per year, and the annual demand is 500 boxes per year.

a. Calculate the annual holding cost plus the annual ordering cost to get the total annual cost when using an order quamtity of 200 boxes. Please show your work.

b. Calculate the economic order quantity (EOQ) and the total annual cost for this order quantity. Please show your work.

Reference no: EM13254143

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