EOQ

EOQ
Verijon, Inc., uses 15,000 pounds of plastic each year in its production of plastic cups. The cost of placing an order is $10. The cost of holding one pound of plastic for one year is $0.30. Verijon uses an average of 60 pounds of plastic per day. It takes five days to place and receive an order.
Required:
1. Calculate the EOQ.
2. Calculate the annual ordering and carrying costs for the EOQ.
3. What is the reorder point?

EOQ