Question

A produce distributor uses 730 packing crates a month, which it purchases at a cost of $10 each. The manager has

assigned an annual carrying cost of 35 percent of the purchase price per crate. Ordering costs are $28. Currently the manager orders once a month.

How much could the firm save annually in ordering and carrying costs by using the EOQ? 

Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"