A small refrigeration shop stocks up on electric motors from a catalog supplier located in the Midwest. The price of the motors varies depending on the quantity purchased; the price breaks are shown in the table. The refrigeration shop knows it will need around 600 motors for the coming season and that it will cost them about $40 to place an order. The company determined that its inventory carrying cost is 20%.

-Calculate the EOQ for Option A.

Question

A small refrigeration shop stocks up on electric motors from a catalog supplier located in the Midwest. The price of the motors varies depending on the quantity purchased; the price breaks are shown in the table. The refrigeration shop knows it will need around 600 motors for the coming season and that it will cost them about $40 to place an order. The company determined that its inventory carrying cost is 20%.
 
-Calculate the EOQ for Option A.

Quizplus · Accepted Answer

The Answer of A small refrigeration shop stocks up on electric motors from a catalog supplier located in the Midwest. The price of the motors varies depending on the quantity purchased; the price breaks are shown in the table. The refrigeration shop knows it will need around 600 motors for the coming season and that it will cost them about $40 to place an order. The company determined that its inventory carrying cost is 20%.
 
-Calculate the EOQ for Option A.

A Small Refrigeration Shop Stocks Up on Electric Motors from a Catalog