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Carrying cost per gallon per year

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Reference no: EM131726856

A furniture manufacturer uses 790 gallons of glue per month, which it buys at a price of $10 per gallon. Carrying cost per gallon per year is 35% of the per-gallon purchase price, and it costs $28 to place an order for glue. Right now the manufacturer places an order for glue every month.

If the manufacturer used the EOQ, how much would it save each year? (Round intermediate calculations and final answer to 2 decimal places, but do not type the dollar sign,)

Reference no: EM131726856

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