Ordering and carrying costs by using the eoq

Reference no: EM131729016

A produce distributor uses 789 packing crates a month, which it purchases at a cost of $12 each. The manager has assigned an annual carrying cost of 38 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?

Reference no: EM131729016

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