Real-World Applicationshard
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A pharmaceutical company manufactures pain relief tablets in bottles of 100, 200, and 500 tablets. Demand per month is: 100-tablet bottles (8,000 units), 200-tablet bottles (5,000 units), 500-tablet bottles (2,000 units). Ordering costs are $80 per order for each size. Holding costs are $0.15 per 100-tablet bottle per month, $0.25 per 200-tablet bottle, and $0.40 per 500-tablet bottle. Using the Economic Order Quantity formula for each product independently, what is the total EOQ across all three sizes?
A pharmaceutical company manufactures pain relief tablets in bottles of 100, 200, and 500 tablets. Demand per month is: 100-tablet bottles (8,000 units), 200-tablet bottles (5,000 units), 500-tablet bottles (2,000 units). Ordering costs are $80 per order for each size. Holding costs are $0.15 per 100-tablet bottle per month, $0.25 per 200-tablet bottle, and $0.40 per 500-tablet bottle. Using the Economic Order Quantity formula for each product independently, what is the total EOQ across all three sizes?