The Allianz Company produces a specialty wood furniture product, and has the following information available concerning its inventory items:

Annual demand is 35,000 packages per year. The purchase price per package is $52.
How many deliveries will be required at the economic order quantity?

Question

The Allianz Company produces a specialty wood furniture product, and has the following information available concerning its inventory items:

Annual demand is 35,000 packages per year. The purchase price per package is $52.
How many deliveries will be required at the economic order quantity?

Quizplus · Accepted Answer

Deliveries at EOQ = 35,000 / 1739.37 = 20.12 deliveries

The Allianz Company Produces a Specialty Wood Furniture Product, and Has