Tool Mart sells 1400 electronic water pumps every year. These pumps cost $54.30 each. If annual inventory carrying costs are 12% and the cost of placing an order is $90, what is the firm's EOQ?
(Q*= Sq root of 2(S)(D)/C)Also: (C = Inventory carrying cost X cost of frames)
Economic Order Quantity Formula:
EOQ = Square Root(2S*D/C) ...
EOQ is determined. The response received a rating of "5" from the student who posted the question.