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Monthly demand for an inventory item currently averages 170 units. The annual carrying cost is $10 per unit. Ordering cost is $70 per order. This information applies to all of the questions on this page.
Find the EOQ. Round up or down your answer to the nearest whole number.
What is the average cycle stock inventory (units) when using the EOQ as the ordering quanity Q? (Round up to nearest whole number)
What is the average number of orders per year under this policy? (Provide 2 decimals in your answer.)
What is the average annual ordering cost under this policy? (round up, no decimals) $
What is the average annual carrying cost under this policy? (no decimals) $
Suppose instead of using the EOQ, we decide to use Q = 200. What is the average annual ordering cost + average annual carrying cost under this policy? (use comma for thousands, no decimals) $
What is the difference (dollar value) between Q=200 and Q = EOQ (no decimals) $
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