Exercise III–3 Economic Order Quantity

 

For each of the following independent cases, use the equation method to compute the economic order quantity.

Case A          Case B            Case C      

 

Annual requirement (in units) …………………………..               13,230           1,681                560

Cost per order ………………………………………………                  $250                 $40                $10

Annual holding cost per unit ……………………………..                 6                    20                      7

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