The Central Valve Company sells industrial valves and fluid control devices. One
ID: 402805 • Letter: T
Question
The Central Valve Company sells industrial valves and fluid control devices. One of Central's most popular valves is the Western, which has an annual demand of 4,000 units. The price of each valve is $86, the inventory carrying cost is $12 per unit per year, and the ordering cost is $30 per order. What is the optimal annual cost of ordering and carrying inventory? Specify as a whole number by rounding the final result. If you are using a hand-held calculator, use at least 4 decimal digits for computations.Explanation / Answer
(a) EOQ=?(2