An auto manufacturer uses 500 tons of steel per day the


An auto manufacturer uses 500 tons of steel per day. The company pays $1100 per ton of steel purchased, and each order incurs a fixed cost of $2250. The holding cost is $275 per ton of steel per year. Using the EOQ model, calculate the optimal order quantity, reorder interval, and average cost per year.

Request for Solution File

Ask an Expert for Answer!!
Other Subject: An auto manufacturer uses 500 tons of steel per day the
Reference No:- TGS0589486

Expected delivery within 24 Hours