What is the Economic Order Quantity (EOQ) for this situation? ORDER QUANTITY ORD
ID: 327238 • Letter: W
Question
What is the Economic Order Quantity (EOQ) for this situation?
ORDER QUANTITY
ORDERING COSTS
CARRYING COSTS
TOTAL COSTS
Q
AS/Q
Qci/2
50
$ 400.00
$ 25.00
$ 425.00
100
$ 200.00
$ 50.00
$ 250.00
150
$ 133.00
$ 75.00
$ 208.00
200
$ 100.00
$ 100.00
$ 200.00
250
$ 80.00
$ 125.00
$ 205.00
300
$ 67.00
$ 150.00
$ 217.00
350
$ 57.00
$ 175.00
$ 232.00
400
$ 50.00
$ 200.00
$ 250.00
ORDER QUANTITY
ORDERING COSTS
CARRYING COSTS
TOTAL COSTS
Q
AS/Q
Qci/2
50
$ 400.00
$ 25.00
$ 425.00
100
$ 200.00
$ 50.00
$ 250.00
150
$ 133.00
$ 75.00
$ 208.00
200
$ 100.00
$ 100.00
$ 200.00
250
$ 80.00
$ 125.00
$ 205.00
300
$ 67.00
$ 150.00
$ 217.00
350
$ 57.00
$ 175.00
$ 232.00
400
$ 50.00
$ 200.00
$ 250.00
Explanation / Answer
Annual demand=400
Ordering cost= $50
Carrying cost= 200/400= $0.5
EOQ= ?2*400*50/0.5= ?80,000= 283.
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