Firm save annually in ordering and carrying costs

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Reference no: EM131741518

A produce distributor uses 788 packing crates a month, which it purchases at a cost of $11 each. The manager has assigned an annual carrying cost of 37 percent of the purchase price per crate. Ordering costs are $29. Currently the manager orders once a month. How much could the firm save annually in ordering and carrying costs by using the EOQ? (Round intermediate calculations and final answer to 2 decimal places. Omit the "$" sign in your response.) Savings ________ $ per year

Reference no: EM131741518

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