The ordering cost be by ordering at the EOQ level

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A produce distributor uses 1,200 packing crates a month, and each crate is purchased at a cost of $16. The manager has assigned an annual carrying cost of 20 percent of the purchase price per crate. Ordering costs are $40. Currently the manager orders once a month. c) What would the net change (with its direction) in the ordering cost be by ordering at the EOQ level? d) What would the net change (with its direction) in the carrying cost be by ordering at the EOQ level?

Reference no: EM13984106

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