Answer the following question(s) using the information below:
The Wood Furniture company produces a specialty wood furniture product, and has the following information available concerning its inventory items:
Annual demand is 10,000 packages per year. The purchase price per package is $16.
-What are the relevant total costs at the economic order quantity?

Question

Answer the following question(s) using the information below:
The Wood Furniture company produces a specialty wood furniture product, and has the following information available concerning its inventory items:
  Annual demand is 10,000 packages per year. The purchase price per package is $16.
-What are the relevant total costs at the economic order quantity?

Quizplus · Accepted Answer

The relevant total costs at the economic order quantity (EOQ) include both the ordering costs and the holding costs. The EOQ model aims to minimize these total costs, and in this scenario, the relevant total costs are given as $3,000.

Answer the Following Question(s) Using the Information Below