Sawtooth Industries
Sawtooth Industries uses an economic order quantity (EOQ) model to manage its inventory investment. The company uses about 25,000 molded plastic assemblies each year. Order costs for these are $150 per order, while carrying costs are about $250 per unit per year. Assume a 365 day year.
-Using the EOQ,how many orders will Sawtooth place each year?
A) about 68
B) about 145
C) about 86
D) about 112
Correct Answer:
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