What is the total cost to garage for purchsing item annually

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Reference no: EM132154270

1. A service garage uses 120 boxes of cleaning cloths per year. The boxes cost $6/each. Ordering costs are $3/order. Holding cost is 10% of the purchase price per unit per year. What is the total cost (TC) to the garage for purchsing this item annually (2 decimal places)? Use EOQ rounded to the nearest whole number.

2. A service garage uses 120 boxes of cleaning cloths per year. The boxes cost $6/each. It costs the garage $3 to place an order and the holding costs are 10% of the purchase price unit per year. Determine the EOQ for this item (2 decimal places).

Reference no: EM132154270

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