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Gre4nikov [31]
3 years ago
12

A restaurant currently uses 62,500 boxes of napkins each year at a constant daily rate. If the cost to order napkins is $200.00

per order and the annual carrying cost for one box of napkins is $1.00, then the optimal order quantity (EOQ) for napkins would be:
Business
1 answer:
vazorg [7]3 years ago
8 0

Answer: 5,000 Boxes.

Explanation:

Given that,

Boxes of napkins uses each year (A) = 62,500

Cost to order napkins (B) = $200.00 per order

Annual carrying cost for one box of napkins (C) = $1.00

Optimal order quantity (EOQ) for napkins = \sqrt{\frac{2\times A\times B}{C} }

                                                                        =\sqrt{\frac{2\times 62,500\times 200.00}{1.00} }

                                                                        = 5,000 Boxes

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