Economic order quantity for sugar for saugatuck soda

Reference no: EM132129128

The Saugatuck Soda Company uses an average of 2,300 kg of sugar per day in producing its premium soda. Their production facility operate 350 days per year. They purchase sugar at $0.40/kg delivered. It costs Saugatuck $210 to process and order for sugar. They use a factor of 13% of the cost of sugar as the annual holding cost. Calculate the economic order quantity for sugar for Saugatuck Soda.

Reference no: EM132129128

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