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Joe​ Henry's machine shop uses 2 comma 510 brackets during the course of a year. These...

Joe​ Henry's machine shop uses 2 comma 510 brackets during the course of a year. These brackets are purchased from a supplier 90 miles away. The following information is known about the​ brackets: Annual demand 2 comma 510 Holding cost per bracket per year $ 1.35 Order cost per order $ 18.25 Lead time 2 days Working days per year 250 ​a) What is the​ EOQ? nothing units ​(round your response to two decimal​ places).

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Answer #1

Annual Demand = D = 2510/year

Ordering Cost = Co = $18.25

Holding Cost = Cc = $1.35/year

Economic Order Quantity Q* = √(2DCo/Cc) = √(2*2510*18.25/1.35) = 260.51

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