Alex's Sporting Goods is the only official supplier of soccer balls for games and practices at all levels of play in the Northwest region.It expects to sell 125,000 soccer balls this year.If carrying costs are $0.75 per soccer ball per year and ordering costs are $76 per order,what is the firm's EOQ for this product? (Please round your answer to the nearest whole number of balls.)

Question

Quizplus · Accepted Answer

The Economic Order Quantity (EOQ) formula is $\sqrt{\frac{2DS}{H}}$, where $D$ is the demand (125,000 soccer balls), $S$ is the ordering cost ($76), and $H$ is the carrying cost per unit per year ($0.75). Plugging in the values, we get $\sqrt{\frac{2*125,000*76}{0.75}} \approx 5,033$.

Alex's Sporting Goods Is the Only Official Supplier of Soccer