Question 2 Incorrect 0.00 points out of The Central Valve Company sells industri

Question

Question 2 Incorrect 0.00 points out of The Central Valve Company sells industrial valves and fluid control devices. One of Central's most popular valves is the Western, which has an annual demand of 2000 units. The price of each valve is $86, the inventory carrying cost is $5, and the ordering cost is $50 per order year? Specify as a whole number by rounding. 10.00 Do not round the EOQ that you obtain in the process of determining the number of orders P Flag question Answer: 262 The correct answer is: 10

Explanation / Answer

EOQ = (2*annual demand*ordering cost/carrying cost)^.5

EOQ = (2*2000*50/5)^.5

EOQ = 200

So,

No. of orders per year = Annual demand / EOQ = 2000/200

No. of orders per year = 10

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