What is the economic order auantity

Assignment Help Operation Management

Reference no: EM133345303

Question: Consider a university that purchases replacement chairs for its classrooms. The purchasing manager knows that the annual demand for replacement chairs is 700. The pricing schedule is as follows

Order Size

100-399

400-699

700+

Price

$150

$125

$100

Carrving Cost = $ 30. Ordering Cost = $ 300. annual demand 700

Questions:

What is the economic order auantity (F00)?

What is the inventory ordering cost using the tOO.

What is the carrying cost using the BOO:

What is the annual purchase cost using E00?

Reference no: EM133345303

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