Vision Company sells optical equipment.Blitz Company manufactures special glass lenses.Vision orders 11,700 lenses per year,260 per week,at $38 per lens.Blitz covers all shipping costs.Vision earns 22% on its cash investments.The purchase-order lead time is 4.0 weeks.Vision sells 315 lenses per week.The following data are available:

What is the economic order quantity for Vision?
A)439 lenses
B)356 lenses
C)276 lenses
D)195 lenses

Question

Vision Company sells optical equipment.Blitz Company manufactures special glass lenses.Vision orders 11,700 lenses per year,260 per week,at $38 per lens.Blitz covers all shipping costs.Vision earns 22% on its cash investments.The purchase-order lead time is 4.0 weeks.Vision sells 315 lenses per week.The following data are available:

What is the economic order quantity for Vision?

What is the economic order quantity for Vision?
A)439 lenses 
B)356 lenses 
C)276 lenses 
D)195 lenses

Quizplus · Accepted Answer

EOQ =
 11ea8a5a_a011_2849_a19c_0f507aabc9c0_TB5540_00_TB5540_00_TB5540_00 EOQ = 276 lenses

Vision Company Sells Optical Equipment