A produce distributor uses 781 packing crates a month, which itpurchases at a cost of $9 each. The manager has assigned an annualcarrying cost of 30 percent of the purchase price per crate.Ordering costs are $29. Currently the manager orders once amonth.
How much could the firm save annually in ordering and carryingcosts by using the EOQ? (Round intermediate calculationsand final answer to 2 decimal places. Omit the “$” sign in yourresponse.)
Savings $ per year
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