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soldier1979 [14.2K]
3 years ago
14

Davis Supply maintains an average inventory of 2,000 dinosaur skulls for sale to filmmakers. The carrying cost per skull per yea

r is estimated to be $150.00 and the fixed order cost is $37. What is the economic order quantity (EOQ)
Business
1 answer:
Yuki888 [10]3 years ago
6 0

Answer: 31

Explanation:

Based on the information given, the economic order quantity will be:

Annual requirement = 2000

Buying cost per order = 37

Carrying cost = 150

Economic order quantity will be:

= ✓(2 × 2000 × 37/150)

= ✓986.7

= 31.4

= 31

Therefore, economic order quantity is 31 units

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