If the annual demand for a product is 350000 units then the, Operation Management

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If the annual demand for a product is 350000 units then the

If the annual demand for a product is 350,000 units, then the annual carrying cost rate is 25 percent of the cost of the unit, the product costs $14.75 per unit to purchase, and each time the product is ordered the related ordering cost is $53.00.

a. What is EOQ?

b. What is the Total Cost at the EOQ?

c. How much would the Total Cost increase if the order quantity must be 2,500 units because of standard shipping-container size?

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Operation Management: If the annual demand for a product is 350000 units then the

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