Australia Boxes sells 6000 boxes per year.The processing cost of each order is $10 and carrying costs are 50 cents per box per year.The optimal time period between orders for this company is bi-monthly.

Question

Quizplus · Accepted Answer

The optimal time period between orders is determined by the Economic Order Quantity (EOQ) formula, not directly stated in the scenario. The information given (annual sales, processing cost per order, and carrying cost per box per year) is used to calculate EOQ, which then helps determine the optimal order frequency, not necessarily bi-monthly without further calculations.

Australia Boxes Sells 6000 Boxes Per Year