step by step instruction. 8.7 Cheesburger and Taco Company purchases 18,458 boxe
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8.7 Cheesburger and Taco Company purchases 18,458 boxes of cheese each year. It costs $25 to place and ship each order and $3.67 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders. Answer 501 Units 8.8 Cheesburger and Taco Company purchases 7,899 boxes of cheese each year. It costs $21 to place and ship each order and $2.35 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders. Answer 188 UnitsExplanation / Answer
8.7 EOQ = SQRT(2*Quantity*cost per order/carrying cost per order)
quantity = 18,458 cost per order =25 carrying cost = 3.67.
Putting the nos. in formula
EOQ = (2*18458*25/3.67)^0.5
= 251,471.3896^0.5 = 501 units
8.8
EOQ = SQRT(2*Quantity*cost per order/carrying cost per order)
quantity = 7899 cost per order =21 carrying cost = 2.35.
Putting the nos. in formula
= SQRT (2*7899*21/2.35)
= 141,173.617^0.5
= 376 units
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