What would be the eoq if tfc chooses this supplier

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Reference no: EM133348379

Question: TFC is considering the introduction of a juice maker that will allow them to sell "juice pods" of concentrated juice that will then be processed in the juice maker by the end consumer, much like a Keurig coffee maker. They have forecast a demand for 270,021 juice makers and have identified potential suppliers for the machines. A second supplier has indicated that the cost of the item for TFC would be $22.49. After some analysis, TFC has determined that the order cost would be $2,511.15 and the holding cost per unit per year would be determined as a percent of item value. They indicated that 23% of unit value is appropriate. What would be the EOQ if TFC chooses this supplier?

Reference no: EM133348379

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