Assume that BC Corp has sales of 10,000 units per year. Further, assume that BC Corp can order the material at a cost of $3.50 per order, plus fixed ordering costs of $3.75 per order. The firm's carrying cost is 50% of the inventory value, at cost.
-Refer to Scenario: Ontario Corp.What is BC Corp.'s EOQ?
A)207
B)197
C)1,197
D)4,000

Question

Quizplus · Accepted Answer

EOQ = √(2*D*O)/H= √(2*10,000*3.75)/1.75= √(75,000)/1.75= 207.11 (rounded to 207)

Assume That BC Corp Has Sales of 10,000 Units Per