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Safari Industries Requires Part XC-4 to Manufacture One of Its

Question 1

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Safari Industries requires part XC-4 to manufacture one of its most popular products.Safari produces 32,000 units of this popular product each year, it costs Safari $12 per unit in holding costs, and order costs are $240.In order to minimize inventory costs, Safari wants to determine the economic order quantity and its total inventory costs if it implements EOQ. Safari's economic order quantity is approximately:


A) 1,131.
B) 800.
C) 2,771.
D) 3,919.
E) 2,667.

Correct Answer:

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