An office supplies retailer orders staplers (among other products) from the manufacturer. The annual demand for staplers has been estimated to be 250 units per month. The holding cost per unit per year has been estimated to be 1.20 $. The ordering cost is estimated to be $ 50 per order. Determine the following: a) EOQ, Annual Ordering Cost, and Holding Cost?

EBK HEALTH ECONOMICS AND POLICY
7th Edition
ISBN:9781337668279
Author:Henderson
Publisher:Henderson
Chapter4: Economic Evaluation In Health Care
Section: Chapter Questions
Problem 7QAP
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An office supplies retailer orders staplers (among other products) from the manufacturer. The annual
demand for staplers has been estimated to be 250 units per month. The holding cost per unit per year has
been estimated to be 1.20 $. The ordering cost is estimated to be $ 50 per order. Determine the
following:
a) EOQ, Annual Ordering Cost, and Holding Cost?
Transcribed Image Text:An office supplies retailer orders staplers (among other products) from the manufacturer. The annual demand for staplers has been estimated to be 250 units per month. The holding cost per unit per year has been estimated to be 1.20 $. The ordering cost is estimated to be $ 50 per order. Determine the following: a) EOQ, Annual Ordering Cost, and Holding Cost?
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