Business, 11.04.2020 00:32 lollipop83
Smith LLC has an annual demand of 1400 high-grade networking hubs. The cost for each hub to Smith is $400. Carrying cost is estimated to be 20% of the unit cost, and the ordering cost is $25 per order.
a. What is the EOQ?
b. What is the total cost of ownership (including annual holding and ordering costs, plus cost of goods sold) for Derrius Smith, the owner?
c. If Derrius orders in quantities of 300 or more, he can get a 5% discount on the cost of detectors. What is his new total cost of ownership?
Answers: 3
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Smith LLC has an annual demand of 1400 high-grade networking hubs. The cost for each hub to Smith is...
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