The project will require an investment of $10,000 in new equipment. the equipment will have no salvage value at the end of the p
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Answer:
C. 2.253
Explanation:
The time between orders in WEEKS in a 52 week year can be calculated as follows
DATA
Annual Demand (D) = 1800 rolls
Cost per roll = $900
Annual holding cost (Ch) = 15% of $900 = $135
Ordering cost (Co) =$225
Solution
EOQ =
EOQ =
EOQ = 78 rolls
Number of orders = 1800/78
Number of orders = 23.077
The time between orders = 52/23.077
The time between orders = 2.253