in dentist field: one box of colors can serve up to 50 teeth. what is the optima

Question

in dentist field: one box of colors can serve up to 50 teeth. what is the optimal order quantity of color boxes to serve an annual demand of 230 tooth. setup cost is 40$ per order and holding cost is 16$per box per year. in dentist field: one box of colors can serve up to 50 teeth. what is the optimal order quantity of color boxes to serve an annual demand of 230 tooth. setup cost is 40$ per order and holding cost is 16$per box per year. one box of colors can serve up to 50 teeth. what is the optimal order quantity of color boxes to serve an annual demand of 230 tooth. setup cost is 40$ per order and holding cost is 16$per box per year.

Explanation / Answer

The formula to calculate Optimal Order Quantity or Economic Order Quantity is = (2FD/C)0.50.

Here F = Fixed cost per order. D = Demand in units per year. C = Carrying cost per unit per year

There fore, putting the values specified in the question to the above formula, we get = {(2 x 40 x 230) / $16}0.50

Then answer is = 33.92

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