Explore BrainMass
Share

Explore BrainMass

    Financial Problem: Determining the Firm's Economic Order Quantity

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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)

    © BrainMass Inc. brainmass.com October 9, 2019, 4:22 pm ad1c9bdddf
    https://brainmass.com/math/consumer-mathematics/financial-problem-determining-firms-economic-order-quantity-30587

    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.

    $2.19