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    Financial Problem: Determining the Firm's Economic Order Quantity

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    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)

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    Solution Preview

    Economic Order Quantity Formula:
    EOQ = Square Root(2S*D/C) ...

    Solution Summary

    EOQ is determined. The response received a rating of "5" from the student who posted the question.