EOQ Analysis - ABC Corporation
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Having problems solving this because I can not determine "S" Here is the problem.
ABC Corporation purchases 1,200,000 units per year of a component. The fixed cost per order is $25. The annual carrying cost of the item is 27% of its $2 cost.
A) Determine the EOQ cost under the following conditions: (1) No changes,
(2) order cost of zero, and (3) carrying cost of zero
B). what do your answers illustrate about the EOQ Model.
I have attached a file of the work I have done. Any help would be greatly appreciated.
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Solution Summary
Excel file contains calculation of EOQ cost under the following conditions:
(1) No changes,
(2) order cost of zero, and
(3) carrying cost of zero
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