Illustrate about the eoq model

Assignment Help Financial Management

Reference no: EM131564486

EOQ analysis-Tiger Corporation purchases 1,200,000 units per year of one component. The fixed cost per order is $25. The annual carrying cost of the item is 27% of its $2 cost.

a. Determine the EOQ if (1) the conditions stated above hold, (2) the order cost is zero rather than $25, and (3) the order cost is $25 but the carrying cost is $0.01.

b. What do your answers illustrate about the EOQ model? Explain.

Reference no: EM131564486

Questions Cloud

Price of the shorter-term bond when interest rates change : Why does the longer-term bond’s price vary more than the price of the shorter-term bond when interest rates change?

What is the width of the drawing on the sixth reduction : A copying machine is set to reduce the dimensions of material copied by 10%. A drawing 12.0 cm wide is reduced, and then the copies are in turn reduced.

The best exemplifies the leadership philosophy : What do these theories really mean? Select a specific leader of the industry enterprise participants you believe best exemplifies the leadership philosophy.

Perspective employers evaluate skill sets : What information should you include in your portfolio? How can this information help perspective employers evaluate your skill sets?

Illustrate about the eoq model : EOQ analysis-Tiger Corporation purchases 1,200,000 units per year of one component. What do your answers illustrate about the EOQ model? Explain.

Distinguished between behavior and mental process : What is distinguished between behavior and mental process and what variable in an experiment it refers to

United states have over the rederal reserve : "What power does the President of the United States have over the Rederal Reserve? Should the President or Congress (or neither).

What will its temperature be in given years : Measurements show that the temperature of a distant star is presently 9800 °C and is decreasing by 10 every 800 years.

How the situation could have been handled or perhaps : Who, What, When, Where, Why and How the situation could have been handled or perhaps how the situation was handled correctly.

User Account

All Pages