The Equation Method for Computing 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
Solution Preview
This is calculated with a square root function on your calculator. I will use the abbreviation SR to show ...
Solution Summary
This solution calculates the economic order quantity for case A, B, and C. All calculations are provided.
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EXAMPLE 2-2
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See attached for fur
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Please help with the following problem regarding inventory management.
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0 < Q < = 300 pounds => $20 per pound
300 < Q < = 600 pounds => 3% discount from the original price
600 < Q < = 1
