CHEAPER BY THE DOZEN USE THE EOQ FORMULA Economic order quantity formula I NEED THIS BEFORE MIDNIGHT Irene Johnson has just been promoted from expediter to assistant supply manager. Irene is responsible for the purchase of roughly $1 million of maintenance, repair, and operating supplies at the Coal Dust Mining Company. The Coal Dust Mining Company uses approximately 16,000 wood shores each year. Irene recently forwarded a request for bids to four suppliers of this commodity. The low bid is as follows: 0399 $7.50 each 400599 $7.00 each 600 or more $6.75 each Transportation costs are: 0-399, $1.25 per unit; 400 or more, $1.00 per unit. Inventory carrying costs are 30 percent of the value of the average annual inventory. Variable order processing costs are estimated to be $60. Irene is familiar with EOQ concepts, but she has never been exposed to a problem just like this. 1. What items should be considered when determining the optimal order size? 2. What is the optimal order quantity for Coal Dusts shores? (Show your work) NEED IT BEFORE 11 PM THE SOONER THE BETTER. http://global.epson.com/SR/procurement/guideline/ (Links to an external site.)

CHEAPER BY THE DOZEN

USE THE EOQ FORMULA
Economic order quantity formula
I NEED THIS BEFORE MIDNIGHT

Irene Johnson has just been promoted from expediter to assistant supply manager. Irene is responsible for the purchase of roughly $1 million of maintenance, repair, and operating supplies at the Coal Dust Mining Company.
The Coal Dust Mining Company uses approximately 16,000 wood shores each year. Irene recently forwarded a request for bids to four suppliers of this commodity. The low bid is as follows:
0--399 $7.50 each
400--599 $7.00 each
600 or more $6.75 each
Transportation costs are: 0--399, $1.25 per unit; 400 or more, $1.00 per unit. Inventory carrying costs are 30 percent of the value of the average annual inventory. Variable order processing costs are estimated to be $60.
Irene is familiar with EOQ concepts, but she has never been exposed to a problem just like this.
1. What items should be considered when determining the optimal order size?
2. What is the optimal order quantity for Coal Dusts shores? (Show your work)

NEED IT BEFORE 11 PM THE SOONER THE BETTER.

http://global.epson.com/SR/procurement/guideline/ (Links to an external site.)