A produce distributor uses 720 packing crates a month which


A produce distributor uses 720 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? (Round intermediate calculations and final answer to 2 decimal places. Omit the "$" sign in your response.)

Savings                 $  per year  

Request for Solution File

Ask an Expert for Answer!!
Operation Management: A produce distributor uses 720 packing crates a month which
Reference No:- TGS01125485

Expected delivery within 24 Hours