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Question: Our home construction company buys nails in 15-pound boxes. We use an average of 2044 boxes a yea…

by | Nov 30, 2023 | Posted Questions



Our home construction company buys nails in 15-pound boxes. We
use an average of 2044 boxes a year. The vendor that makes the
nails can produce 42 boxes per day while our usage is 12 boxes per
day. It costs $1.80 to place the typical order. Annual carrying
costs are $0.25 per box.

What will be our average number of boxes on hand if we order the
EOQ bags in each order? (Keep up to two decimal places in your
answer)

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