Question

Babble, Inc., buys 405 blank cassette tapes per month for use in producing foreign language courseware. The ordering cost is ​$15.00. Holding cost is ​$0.25 per cassette per year. a. How many tapes should Babble order at a​ time?

Answer 1

The appropriate solution is "764".

Step-by-step explanation:

Given:

Demand per month,

D = 405

or,

=
`405* 12`

=
`4860`

Ordering cost,

S = $15

Holding cost,

H = $0.25

As we know,

⇒
`EOQ=\sqrt{(2DS)/(H) }`

⇒
`=\sqrt{(2* 4860* 15)/(0.25) }`

⇒
`=\sqrt{(145800)/(0.25) }`

⇒
`=√(583200)`

⇒
`=763.67`

or,

⇒
`=764`