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What the economic order quantity for Texco Ltd

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Question - The Texco Ltd experiences relatively constant demand of 15 000 units per year for one of its products. The product, a coffee-making machine, costs the firm $60. Placing an order costs $12 and annual carrying costs are $3 per unit. The firm works 255 days per year and desires a safety stock of 150 units. The lead time for an order is 20 working days. What the economic order quantity for Texco Ltd?

a. 346

b. 222

c. 154

d. 219

Reference no: EM132816970

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