Total cost for ordering and holding these crates

Reference no: EM131655908

A large food distributor uses 8000 packing crates each month to pack and ship its goods. The crates are purchased at a cost of $10 each. The annual holding cost for a crate is estimated at 35% of the purchase price. It is estimated that the cost to place an order for the crates is $25. What is the EOQ for this item?

1) What is the EOQ for these crates? (Round your answer to the nearest whole number)

2) If the company used the EOQ, what would be there total cost for ordering and holding these crates? (Round your final answer to the nearest whole number)

3) If the current purchasing manager orders crates once a month, how much money would they save if they switched to the EOQ method of ordering?

Reference no: EM131655908

Questions Cloud

Recommend marketing program for a brand : Analyze a foreign culture of your choice, and recommend a marketing program for a brand of one of the following made in the USA.

Technique to analyze big data and discuss their findings : Identify at least three organizations that are using this technique to analyze big data and discuss their findings.

True of undocumented immigrants : Which of the following is not true of undocumented immigrants? Use of Native American depictions or references as school mascots.

Decided to use the rop system-customer service level : The Food distributor from problem 9 has also decided to use the ROP system for determining when to place an order.

Total cost for ordering and holding these crates : If the company used the EOQ, what would be there total cost for ordering and holding these crates?

What law will the court apply : What law will the court apply? How could this dispute have been avoided in the first place? Assess fully.

Explain why the bottleneck should never shut down : Explain why the bottleneck should never shut down?

What is starbuck sustainable competitive advantage : What is Starbuck's sustainable competitive advantage? Discuss in details the advantages and disadvantages of SAP's method of organizing data.

Described as the generalization of expertise : According to Robert Veatch, explain what is involved in the fallacy described as the "generalization of (technical) expertise?"

User Account

All Pages