Stern Corporation uses semi-hex joints in its manufacturing process.

Stern Corporation uses semi-hex joints in its manufacturing process. If stern’s total demand for the joints for next year is estimated to be 15,000 units, and if the cost per order is $80, what is stern’s economic order quantity of semi-hex joints? Assume that carrying costs for semi-hex joints are $.51 per unit and round to the nearest 100 units.
a. 1500
b. 1700
c. 2000
d. 2200

 

Solution