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 150,000 soccer balls this year. If carrying costs are $1.50 per soccer ball per year and ordering costs are $93 per order, what is the firm's EOQ for this product? (Round to the nearest whole ball.)

Question

Quizplus · Accepted Answer

The Economic Order Quantity (EOQ) formula is √((2DS)/H), where D is demand (150,000), S is ordering cost ($93), and H is carrying cost ($1.50). Plugging in the values: EOQ = √((2*150,000*93)/1.50) = 4,313 balls.

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