Suchy Stablegear buys 15,000 units of an inventory item each year. It faces a $100 order cost, and the carrying cost per item is $26. Assume a 365-day year. a. What is Suchy's economic order quantity? b. Assuming there is no safety stock, what is Suchy's total cost at the EOQ? c. Suppose Suchy can either 1) reduce both its order cost and its carrying cost by 10% or 2) reduce its carrying cost by 15% Which would result in the lowest total cost at the resultant new EOQ?

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