Need business and finance help with EOQ- Distibution costs

timer Asked: Mar 9th, 2016

Question description

A produce distributor uses 800 packing crates a month, which it purchases at a cost of $10 each.The manager has assigned an annual carrying cost of 35% if the purchase price per crate. Ordering costs are $28. Currently the manager orders once a month. How much could the firm save annually in ordering and carrying costs by using the EOQ?

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