Business, 15.04.2020 17:47 quissowavyquis4808

A liquid company produces hand sanitizer which has demand of 300,000 units per year.

The production cost of the product is $0.5 per unit.

The company decided to use 10% of the production cost for inventory carrying cost.

At each order, the company needs to pay extra $20 for the paperwork.

Assume that an order replenishes instantaneously. Compute economic order quantity, optimal order interval, and total annual cost.

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A liquid company produces hand sanitizer which has demand of 300,000 units per year.

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