Ergonomics Inc. sells ergonomically designed office chairs. The company has the following informatio
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Ergonomics Inc. sells ergonomically designed office chairs. The company has the following information: Average demand 22 units per day Average lead time 53 days Item unit cost- $73 for orders of less than 430 units Item unit cost- $70 for orders of 430 units or more Ordering cost $48 Inventory carrying cost-20% The business year is 250 days Assume there is no uncertainty at all about the demand or the lead time. a. Calculate EOQ if unit cost is $73 and $70. (Note: These EOQs do not need to be feasible in their price range.) (Round up your answers to the next whole number.) EOQ Unit cost at $73 Unit cost at $70 units units
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