Cheeseburger and Taco Company purchases 9,800 boxes of cheese each year. It costs $25 to place and ship each order and $8.92 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders.
Calculate Economic Order Quantity.
Round the answer to the whole number.
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EOQ = [2x9,800x$25/$8.92]^1/2
EOQ = 234 (nswer to the whole number)
I hope, you will easily understand the concept.
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