Scary Clowns, Inc., supplies special makeup cases to a major circus. The circus orders its EOQ of 1200 cases every two months from Scary Clowns.

Published by admin at November 4, 2023

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Scary Clowns, Inc., supplies special makeup cases to a major circus. The circus orders its EOQ of 1200 cases every two months from Scary Clowns. Scary Clowns incurs setup costs of $1800 every time it produces these cases, and its annual holding cost per case is $3.

a. How many units should Scary Clowns produce in each batch?

b. What is the total annual setup and holding cost for Scary Clowns using this policy?

Scary Clowns, Inc., supplies special makeup cases to a major circus. The circus orders its EOQ of 1200 cases every two months from Scary Clowns.

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"Get 15% discount on your first 3 orders with us"
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