Results of fed reducing rates-dropping carrying costs

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How do you calculate your EOQ if your holding cost is zero. Our company is non profit and does not track holding cost. But I am interested in calculating the ordering quantities so we can carry the most efficient amount. If OwenCo needs to purchase 5,000 blanks to yearly manufacture widgets from it's supplier Mellon Steel. The cost of each order is $525, and the unit cost is $2.50 per blank. If carrying costs are 5%, what is OwenCo's EOQ for these blanks? And what is the results of the Fed reducing rates and dropping the carrying costs to a startling 2.5%?

Reference no: EM131308277

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