Generates lowest total purchasing and holding cost

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Reference no: EM132216318

Your new job is to improve the purchase order quantities for the MRO products. Since there is rather high volume for a number of those products, you decide to use the formula from this class.

Lubricating oil is purchased an average of 160 cans per year. Preparing an order and receiving a shipment of lubricant costs $2.2 per order. Annual carrying costs are $0.35 per can.

Determine the quantity that generates the lowest total purchasing and holding cost. (Keep two decimal places in your answer

Reference no: EM132216318

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