A major fortune 500 company decides to use the eoq model


A major Fortune 500 company, decides to use the EOQ model for the product they produce. The weekly demand is 1,000 units, each unit costing $10, ordering costs are $50 per order, and inventory carring costs are 25%. Calculate the following:

A) The EOQ in units and the number of orders per year

B) The cost of ordering, cost of carrying inventory, and total cost.

C) Based the EOQ amount found in part A, what is the POQ?

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Operation Management: A major fortune 500 company decides to use the eoq model
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