Stimpson Company sells 900 units of its deluxe product each year. The cost of setting up for one production run is $150; the cost of carrying one unit in inventory for a year is $3.
A. Calculate the economic order quantity.
B. Calculate the annual setup cost of the EOQ policy.
C. Calculate the annual carrying cost of the EOQ policy.
D. Calculate the total inventory-related cost of the EOQ policy.
Correct Answer:
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(2 × 900 × $150)/3...View Answer
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