A shoe store sells 90 pairs of shoes each month.Each pair carried in stock incurs a holding cost of $10 per month.Each order costs approximately $25 in shipping and receiving.
a.What is the optimal EOQ?
b.What is the optimal number of orders per month?
c.What are the total ordering and carrying costs?

Question

Quizplus · Accepted Answer

The Answer of A shoe store sells 90 pairs of shoes each month.Each pair carried in stock incurs a holding cost of $10 per month.Each order costs approximately $25 in shipping and receiving.
a.What is the optimal EOQ?
b.What is the optimal number of orders per month?
c.What are the total ordering and carrying costs?

A Shoe Store Sells 90 Pairs of Shoes Each Month