Annual demand for the notebook binders that Ted's Stationery Shop sells is 10,000 units. Ted operates his business on a 200-work-day year. The unit cost of a binder is $2, and the cost of placing an order with his supplier is $0.40. The cost of carrying a binder in stock for one year is 10 percent of its value.

Question

Annual demand for the notebook binders that Ted's Stationery Shop sells is 10,000 units. Ted operates his business on a 200-work-day year. The unit cost of a binder is $2, and the cost of placing an order with his supplier is $0.40. The cost of carry­ing a binder in stock for one year is 10 percent of its value.

a. What should the EOQ be?

b. How many orders are placed per year?

c. How many working days elapse between reorders?

Anonymous · Answer

tell me the answer ....please

Anonymous · Answer

Flux square root of the $o.40 will be the cost for operating demand minus the demand needed in a 200 workday year. Multiply this by the full cost of a binder at 10 percent par value. Enter the bond relevance at a discounted work year to get 2(10,000)(200)/.2= 2,000,000 use this as a base board amount discount at its square root to find 1,414.21