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Determine Annual Demand

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Ken is in the lumber business. His competitor is Pacific Woods. The ordering cost for plywood is $25 and the carrying cost is 25% of the unit cost. The cost per load is $100. The Economic Order Quantity is 4,000 loads at a time. What is the annual demand of plywood in loads?

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Solution Summary

This solution shows how to determine the annual demand of plywood for a business, given its ordering cost, carrying cost, cost per load, and Economic Order Quantity.

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Ken is in the lumber business. His competitor is Pacific Woods. The ordering cost for plywood is $25 and the carrying cost is 25% of the unit cost. The cost per load is ...

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