Total cost of ordering and carrying the nails

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Reference no: EM132765289

Our home construction company still buys nails in 15-pound boxes but now we use an average of 2690 boxes a year. Preparing an order and receiving a shipment of nails involves a cost of $2.35 per order. Annual carrying costs are $1.0 per bag.

What will be their total cost of ordering and carrying the nails? (Include the pennies in your answer)

Our home construction company buys nails in 15-pound boxes. We use an average of 2215 boxes a year. The vendor that makes the nails can produce 33 boxes per day while our usage is 8 boxes per day. It costs $1.60 to place the typical order. Annual carrying costs are $0.20 per box.

What will be our average number of boxes on hand if we order the EOQ bags in each order?

Reference no: EM132765289

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