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ABC Company sells 2,367 chairs a year at an average price per chair of $194. The carrying cost per unit is $34.17. The company orders 500 chairs at a time and has a fixed order cost of $47 per order. The chairs are sold out before they are restocked. What is the economic order quantity?
ABC Company sells 3,531 chairs a year at an average price per chair of $157. The carrying cost per unit is $30.42. The company orders 591 chairs at a time and has a fixed order cost of $120.6 per order. The chairs are sold out before they are restocked. What are the total carrying costs?
ABC Company sells 2,391 chairs a year at an average price per chair of $170. The carrying cost per unit is $30.15. The company orders 499 chairs at a time and has a fixed order cost of $92 per order. The chairs are sold out before they are restocked. How many orders will company place if it follows the economic order quantity model?
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