Henry Crouch's law office has traditionally ordered ink refills 55 units at a time. The firm estimates that carrying cost is 45% of the $9 unit cost and that annual demand is about 240 units per year. The assumptions of the basic EOQ model are thought to apply. For what value of ordering cost would its action be optimal? a) For what value of ordering cost would its action be optimal? Its action would be optimal given an ordering cost of $☐ per order (round your response to two decimal places).
Henry Crouch's law office has traditionally ordered ink refills 55 units at a time. The firm estimates that carrying cost is 45% of the $9 unit cost and that annual demand is about 240 units per year. The assumptions of the basic EOQ model are thought to apply. For what value of ordering cost would its action be optimal? a) For what value of ordering cost would its action be optimal? Its action would be optimal given an ordering cost of $☐ per order (round your response to two decimal places).
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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![Henry Crouch's law office has traditionally ordered ink refills 55 units at a time. The firm estimates that carrying cost is 45% of the $9 unit cost and that annual demand is about 240 units per year.
The assumptions of the basic EOQ model are thought to apply. For what value of ordering cost would its action be optimal?
a) For what value of ordering cost would its action be optimal?
Its action would be optimal given an ordering cost of $ ☐ per order (round your response to two decimal places).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F37e2f913-30b2-4c8c-98d5-339163057ff1%2F36ee24b4-a06d-4660-831f-b96165159bf4%2Fbo8ut6_processed.png&w=3840&q=75)
Transcribed Image Text:Henry Crouch's law office has traditionally ordered ink refills 55 units at a time. The firm estimates that carrying cost is 45% of the $9 unit cost and that annual demand is about 240 units per year.
The assumptions of the basic EOQ model are thought to apply. For what value of ordering cost would its action be optimal?
a) For what value of ordering cost would its action be optimal?
Its action would be optimal given an ordering cost of $ ☐ per order (round your response to two decimal places).
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