A7. (Economic Order Quantity)
Corporate Financial Management (3rd Edition)
Emery, Douglas R., Finnerty, John D., & Stowe, John D. (2007)
Individual assignment: Text Problem Set
Chapter Problems
A7. (Economic Order Quantity) Knoxville Accountants LLP consumes 100,000 packets of plain copier paper annually. The usage is roughly constant throughout the year. The carrying cost of this inventory is $2.00 per unit average inventory per year. The ordering and delivery cost is a fixed $100 per order. a. What is the economic order quantity? b. How many orders will be placed per year using the EOQ? c. What is the average inventory level? d. What is the total annual inventory cost?
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