Page 1 of 1
A fresh produce distributor uses 860 non-returnable packing crates a month, which it purchases at a cost of $3 each. The
Posted: Sun Jul 03, 2022 3:17 pm
by answerhappygod
- A Fresh Produce Distributor Uses 860 Non Returnable Packing Crates A Month Which It Purchases At A Cost Of 3 Each The 1 (46.6 KiB) Viewed 9 times
A fresh produce distributor uses 860 non-returnable packing crates a month, which it purchases at a cost of $3 each. The manager has assigned an annual holding cost of 20 percent of the purchase price per crate. Ordering cost is $30 per order. Currently the manager orders 860 crates at a time. How much could the firm save annually in ordering and holding costs by using the EOQ? (Round the final answer to 2 decimal places.) Annual savings $ 8.50