ABC Company has to buy air-conditioners for its trucks from its supplier. The demand for air-conditioners is 1000 next y

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answerhappygod
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ABC Company has to buy air-conditioners for its trucks from its supplier. The demand for air-conditioners is 1000 next y

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ABC Company has to buy air-conditioners for its trucks from its
supplier. The demand for air-conditioners is 1000 next year. The
ordering cost is $10 per order, and the holding cost per unit per
year in $0.5. The company schedules production of this engine only
as needed, during the 250 days per year the company operates. Find
a.What is the EOQ? b.How many times per year does the company
reorder? c.What is the length of an order cycle? d.What will the
total annual carrying and ordering cost be if the EOQ quantity is
ordered?
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