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miss Akunina [59]
3 years ago
6

Haulsee Inc. builds 800,000 golf carts a year and purchases the electronic motors for these carts for $370 each. Ordering costs

are $540, and Haulsee's inventory carrying costs average 14% of the inventory value.
What is the economic order quantity (EOQ) for Haulsee?
Business
1 answer:
Allisa [31]3 years ago
4 0

Answer:

4,084

Explanation:

Calculation to determine the economic order quantity (EOQ) for Haulsee

Using this formula

Economic Order Quantity (EOQ) =((2* Annual Requirement * Cost per order)/Carrying cost per unit)^ (1/2)

Let plug in the formula

Economic Order Quantity (EOQ) = ((2*800,000*540)/(370*14%))^(1/2)

Economic Order Quantity (EOQ) = 4,084 units

Therefore the economic order quantity (EOQ) for Haulsee is 4,084 units

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