Economic order quantity for sugar for saugatuck soda

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Reference no: EM132292035

The Saugatuck Soda Company uses an average of 2,000 kg of sugar per day in producing its premium soda. Their production facility operate 360 days per year. They purchase sugar at $0.40/kg delivered. It costs Saugatuck $200 to process and order for sugar. They use a factor of 18% of the cost of sugar as the annual holding cost.

Calculate the economic order quantity for sugar for Saugatuck Soda.

Reference no: EM132292035

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