Ordering and carrying costs by using eoq

Assignment Help Operation Management

Reference no: EM132223646

A produce distributor uses 775 packing crates a month, which it purchases at a cost of $8 each. The manager has assigned an annual carrying cost of 35 percent of the purchase price per crate. Ordering costs are $30. Currently the manager orders once a month.

How much could the firm save annually in ordering and carrying costs by using the EOQ? (Round intermediate calculations and final answer to 2 decimal places. Omit the "$" sign in your response.)

Savings $ per year

Reference no: EM132223646

Questions Cloud

What would be the customer time in the system : What would be the customer time in the system if a second window was opened with each server doing all three tasks?

Based on the company offering of goods or services : What is a supply chain? How does it differ based on the company’s offering of goods or services?

Differences between simple trust and blind trust : What are the differences between “simple trust,” “blind trust,” and “authentic trust”?

About the single employer and multi employer programs : Which program is projected to run out of money first? Which of the following statements about the single employer and multi employer programs is true?

Ordering and carrying costs by using eoq : How much could the firm save annually in ordering and carrying costs by using the EOQ?

What are the basics of effective goals : What are the basics of effective goals? Give an example of your own experience for setting a goal. i

Explain the concept of warehouse processes-lean warehouse : Explain the concept of warehouse processes, lean warehouse. How does data analysis help to fulfil a lean warehouse?

Favor increasing taxes on luxury items : Would you favor increasing taxes on luxury items such as expensive jewelry, luxury automobiles, yachts, and similar products?

Production possibilities curve between the two gauge : If an Economy experience is increasing opportunity cost with the respect to two good then the production possibilities curve between the two gauge will

User Account

All Pages