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(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

$80

each and the annual carrying costs per unit are estimated to be

30%

of purchase price. Ordering costs are

$25

per 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 S

What 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.



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