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Determine the economic order quantity

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Reference no: EM131927402

A pet shop expects to sell 1,521 baby golden retriever puppies at a steady rate in the upcoming year. The owner will order puppies from the puppydog factory by placing several orders of the same size spaced equally throughout the year. Determine the economic order quantity that minimizes the inventory cost, and then find the minimum inventory cost if the ordering cost for each delivery is $36 and carrying costs, based on the average number of puppies in inventory amount to $8 per year for one puppy.

Reference no: EM131927402

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