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If annual sales for your product are 709, and the holding cost per unit is $5, and the cost to place an order is $350, then:
1. Calculate the EOQ, and round it to 2 decimal places. (I'm only telling you to do that to make sure you get the same answer with the randomly generated numbers that the WebCampus solution is going to come up with).
2. Calculate the ordering and holding costs, per year, if you use the EOQ. Notice I did not give you a Unit Cost for the item, so you can't calculate a Cost of Goods Sold for the item, even if you wanted to.
Sum of Ordering and Holding costs (rounded to nearest dollar):
2 repairers take 20 minutes. and 3 repairers take 15 minutes. While these cars are down, lost income, is $40 per hour. Cars tend to break down at the rate of two per hour.
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