Determining the Economic Order Quantity

"Taylor Supply is a wholesaler of office supplies and equipment. Taylor purchases cartons of staples from Barker Manufacturing. Barker offers a price of $7 per carton of staples. Taylor incurs a fixed charge of $90 per order to cover order equipment and clerical costs. 1. What is Taylor's basic economic order quantity? a. 247 cartons b. 350 cartons c. 3,178 cartons d. 4,495 cartons 2. What is Taylor's annual average number of cartons in cycle stock inventory (i.e., Taylor's average annual inventory level)? a. 611 cartons b. 667 cartons c. 2,000 cartons d. 36,667 cartons "