Calculate the EOQ, If Medtronic would like to use EOQ for

Calculate the EOQ

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Reference no: EM132094224

Medtronic is in need of buying a plastic case for the medical device that is in its second year of production. The demand expected this year for units is approaching 1,000,000. The set-up for each lot is $1,200 as there is a high quality initiative that goes into this particular plastic case. The price of the unit is $10 and based on the recent tax cuts, the borrowing rate (inventory hold rate) has decreased to 15%. If Medtronic would like to use EOQ for calculating how many to purchase per lot. Calculate the EOQ.

Reference no: EM132094224

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