Ordering and carrying costs by using the EOQ Model

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1. During a grant writing process, consider the various topics covered in a typical letter of intent, including the general goals and purpose of your proposed initiative. Please consider the three most important topics to include in the letter of intent and offer detail on why you think this is the case. Also in a separate paragraph, please consider and discuss the topics that would be the most tricky or complex to cover in a letter of intent.

2. A textbook distributor uses 1000 pallets of carboard boxes a month, which it ourchases at a cost of $20 each. The distributor has assigned an annual carrying cost of 30 percent of the purchase price. Ordering costs are $100 per order. Currently the distributor orders four times a month. How much could the firm save annually in ordering and carrying costs by using the EOQ Model?

Reference no: EM132207030

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