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    Economic Order Quantity and Inventory

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    The High-Rise Building Company uses 400,000 tons of stone per year. The carrying costs are $100/ton. The cost per order is $500. Calculate the optimal number of orders per year.

    400

    100

    200

    300
    The High-Rise Building Company uses 400,000 tons of stone per year. The carrying costs are $100/ton. The cost per order is $500. Calculate the total costs of optimal inventory.

    $200,000

    $150,000

    $100,000

    $50,000

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    https://brainmass.com/business/accounting/economic-order-quantity-and-inventory-588983

    Solution Summary

    The High-Rise Building Company uses 400,000 tons of stone per year. The carrying costs are $100/ton. The cost per order is $500. Calculate the optimal number of orders per year.

    $2.19