A service garage uses 120 boxes of cleaning cloths a year.The boxes cost $6 each.Ordering cost is $3 and holding cost is 10 percent of purchase cost per unit on an annual basis.Determine:
(i)The economic order quantity
(ii)The total cost of carrying the cloths (excluding purchase price)
(iii)The average inventory

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The Answer of A service garage uses 120 boxes of cleaning cloths a year.The boxes cost $6 each.Ordering cost is $3 and holding cost is 10 percent of purchase cost per unit on an annual basis.Determine:
(i)The economic order quantity
(ii)The total cost of carrying the cloths (excluding purchase price)
(iii)The average inventory

A Service Garage Uses 120 Boxes of Cleaning Cloths a Year.The