The Allianz Company produces a specialty wood furniture product,and has the following information available concerning its inventory items:

Annual demand is 33,000 packages per year.The purchase price per package is $49.
What is the economic order quantity?

Question

The Allianz Company produces a specialty wood furniture product,and has the following information available concerning its inventory items:

Annual demand is 33,000 packages per year.The purchase price per package is $49.
What is the economic order quantity?

Quizplus · Accepted Answer

Unit carrying costs = ($49 × 0.18)+ $5 = $13.82
EOQ = = 1498.19 units
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The Allianz Company Produces a Specialty Wood Furniture Product,and Has