Exercise III???3 Economic Order Quantity

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

Case A?????????????????? Case B?????????????????????? Case C????????????

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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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