(Solved): Chapter 12 Lowe's sells a certain style of battery weed eaters. They sell 40 per month. The weed eat ...
Chapter 12 Lowe's sells a certain style of battery weed eaters. They sell 40 per month. The weed eaters are purchased for
$80each and the annual carrying costs per unit are estimated to be
30%of purchase price. Ordering costs are
$25per order. Note: Given monthly Demand. Need to calculate Annual Demand. Need to calculate carrying cost per item. Stated as a percentage of purchase price.
EOQ=5QRt,2D(S)/(H)
TC=(Q)/(2)\times H (D)/(Q)\times SWhat is the EOQ (Carry out 2 decimal pts) What is Total Cost using EOQ? If the buyer orders 50 weed eaters on every order, what is the impact on Total Cont vs
(E)/(O)O Total Cost? if nothing elve changes but the quantity ordered on the PO's ( 50 w FOQ) then take the TC equationabove using the EOQ and substitute 50 . Then, what is the impact on TC, Holding costs and Ordering costs.
