Margersquos model shop sells stock car replicas the most


Marge’s Model Shop sells stock car replicas. The most popular model sells 100 units each week. The shop is open year-round except for a two-week holiday closing over Christmas. Marge uses EOQ tools to determine optimal order quantities from a Distributor; that number is 700 stock cars. The paperwork and processing are estimated to create an administrative cost of $49 per order. If the Holding Cost is 20%, what is the value of the stock car being ordered?

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Operation Management: Margersquos model shop sells stock car replicas the most
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