Franconia Notch Blowers would like to find the optimum size order given that it annually sells 10,000 snow blowers per year.It costs Franconia $75 each time it processes an order for snow blowers and the carrying cost for each blower is $50 per year.What is the optimum order size for Franconia?

Question

Quizplus · Accepted Answer

EOQ = [2OS/C}^1/2 = [2 ´ 75 ´ 10,000/50}^1/2= 173.21

Franconia Notch Blowers Would Like to Find the Optimum Size