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What are the total annual costs of holding andordering

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Reference no: EM13711667

Discount -Mart , a major East Coast retailer, wants todetermine the economic order quantity (see chapter 12 for EOQ formula) for irshalogen lamps. It currently buys all halogen lamps from Specialty LightingManufacturers, in Atlanta. Annnual demand is $2,000 lamps, ordering cost perorder is $30, annual carrying cost per lamp is $12.

a.)   What is the EOQ?

b.)   What are the total annual costs of holding andordering (managing) this inventory?

How many orders should Discount-Mart place with SpecialtyLighting per year.

 

Reference no: EM13711667

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