Problem
Jole sells handmade curtains located in Benita Village. These curtains cost ABC $15 each. Clients want to buy the curtains at a rate of 240 per week. The company operates 52 weeks per year. ABC, the owner, estimates his ordering cost at $50. Annual holding costs are 20 percent of the unit cost. Lead time is 2 weeks. Using the information given.
1) Calculate the economic order quantity.
2) Calculate the total annual costs using the ECG.