Chen's Chemicals, a firm that produces industrial chemicals, uses 26,000 gallons of a particular solvent per year on a continuous basis. The product has a fixed cost of $360 per order, and its carrying cost is $4.00 per gallon per year. It takes 6 days to receive a shipment after an order is placed, and the firm wishes to hold 16 days' isage in inventory as a safety stock. What is the Economic Ordering Quantity (EOQ)? Assume a 365-day year. Give your answer in gallons rounded to the nearest vhole number. Do not include comma separators in your answer.

Chen's Chemicals, a firm that produces industrial chemicals, uses 26,000 gallons of a particular solvent per year on a continuous basis. The product has a fixed cost of $360 per order, and its carrying cost is $4.00 per gallon per year. It takes 6 days to receive a shipment after an order is placed, and the firm wishes to hold 16 days' isage in inventory as a safety stock. What is the Economic Ordering Quantity (EOQ)? Assume a 365-day year. Give your answer in gallons rounded to the nearest vhole number. Do not include comma separators in your answer.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 7E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...

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