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Determine the economic order quantity

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Reference no: EM131927630

A California distributor of sporting equipment expects to sell 10,800 cases of tennis balls during the coming year at a steady rate. Yearly carrying costs (to be computed on the average number of cases in stock during the year) are $10 per case, and the cost of placing an order with the manufacturer is $60.

(a) Find the inventory cost incurred if the distributer orders 600 cases at a time during the year

(b) Determine the economic order quantity, that is, the order quantity that minimizes the inventory cost

Let x be the number of cases per order and r the number of orders placed per year.

Objective equation:?

Constraint equation:?

Inventory cost:?

The economic order quantity:?

Reference no: EM131927630

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