Question

Alex's sporting goods is the only official supplier of soccer balls for games and practices at all levels of play in the northwest region. it expects to sell 150,000 soccer balls this year. if carrying costs are $1.50 per soccer ball per year and ordering costs are $93 per order, what is the firm's eoq for this product? (please round your answer to the nearest whole number of balls.

Answer 1

We are given that:

Annual Demand, D = 150,000

Cost per Order, S = 93

Carrying Cost, H = 1.5

We can use the EOQ formula to get the answer:

EOQ = √(2*D*S/H)

EOQ = √(2*150000*93/1.5)

EOQ = 4312.77 = 4313 balls