Aproduce distributor uses 800 packing crates a month, which it purchases at a cost of $10 each. the manager has assigned an annual carrying cost of 35 percent of the purchase price per crate. ordering costs are $28. currently the manager orders once a month.

$364.29

Explanation:

given,

Packing of crates per month (u)= 800

annual carrying cost of 35 percent of the purchase price per crate.

Ordering cost(S) = $ 28

D = 800 x 12 = 9600 crates/year

H = 0.35 P

H = 0.35 x $10

H = $3.50/crate per yr.

Present Total cost

=

= 1400 + 336

= $ 1,736

Total cost at EOQ

=

= 685.86 + 685.85

= $ 1,371.71

the firm save annually in ordering and carrying costs by using the EOQ

    = $ 1,736 - $ 1,371.71

    = $364.29

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resonant frequency