Explain how much could the firm save yearly in ordering

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Q. A produce distributor uses 760 packing crates a month, which it purchases at a cost of $10 each. The manager has assigned an Yearly carrying cost of 35 percent of the purchase price per crate. Ordering costs are $28. Currently the manager orders once a month.

Explain how much could the firm save Yearly in ordering and carrying costs by using the EOQ? (Round intermediate calculations and final answer to 2 decimal places. Omit the "tiny_mce_markerquot; sign in your response.)

Reference no: EM1373898

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