Please use the numbers that I have, because I have not been able to figure it ou
ID: 2627868 • Letter: P
Question
Please use the numbers that I have, because I have not been able to figure it out. Thank you.
Economic order quantity (EOQ). Tinnendo Inc. believes it will sell 4 million zen-zens, an electronic game, this coming year. Note that this figure is for annual sales. The inventory manager plans to order zen-zens 53 times over the next year. The carrying cost is $0.05 per Zen-zen per year. The order cost is $564 per order.
What are the annual carrying cost, the annual ordering cost?
The optimal order quantity for the zen-zens?
Verify your answer by calculating the new total inventory cost.
Explanation / Answer
Annual Carrying Cost= Average inventory