Jony furniture store examines its inventory policy and considers using an economicorder quantity (EOQ) approach. They have the following information about a tableset:Annual demandCurrent order quCarrying costOrder cost3.920 sets30 sets$80.00/set/year$200a. What is the current total annual cost (TC)b. What is the economic order quantity (EOQ)?c. What is the total annual cost at the economic order quantity (EOQ)

Economic Order Quantity, also known as Economic Purchase Quantity, is the order quantity that…

Answered: Order cost $80.00/set/yea $200 a. What…

Order cost $80.00/set/yea $200 a. What is the current total annual cost (TOR b. What is the economic order quantity (EOQ)? c. What is the total annual cost at the economic order quantity (EOO)

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter4: Extent (how Much) Decisions

Section: Chapter Questions

Problem 3MC

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Question

Jony furniture store examines its inventory policy and considers using an economic
order quantity (EOQ) approach. They have the following information about a table
set:
Annual demand
Current order qu
Carrying cost
Order cost
3.920 sets
30 sets
$80.00/set/year
$200
a. What is the current total annual cost (TC)
b. What is the economic order quantity (EOQ)?
c. What is the total annual cost at the economic order quantity (EOQ)

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