Smith's Florist popular flower bouquet has a weekly demand of 40 units. Each bouquet is...
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Accounting
Smith's Florist popular flower bouquet has a weekly demand of 40 units. Each bouquet is sold for $100. The ordering cost is $60 per order. The carrying cost is 30% of the selling price per unit per year. The store operates 50 weeks a year. Required: i. Compute the Economic Order Quantity (EOQ) ii. What is the total annual carrying cost this year? iii. What is the time between orders (i.e. length of an order cycle) in weeks using EOQ.
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