Haulsee Inc. builds 800,000 golf carts a year and purchases the electronic motors for these carts for $370 each. Ordering costs are $540, and Haulsee's inventory carrying costs average 14% of the inventory value. What is the economic order quantity (EOQ) for Haulsee?

4,084

Explanation:

Calculation to determine the economic order quantity (EOQ) for Haulsee

Using this formula

Economic Order Quantity (EOQ) =((2* Annual Requirement * Cost per order)/Carrying cost per unit)^ (1/2)

Let plug in the formula

Economic Order Quantity (EOQ) = ((2*800,000*540)/(370*14%))^(1/2)

Economic Order Quantity (EOQ) = 4,084 units

Therefore the economic order quantity (EOQ) for Haulsee is 4,084 units

answer; 33,000;

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.