Jony Furniture Store Examines Its Inventory Policy and Considers Using

Essay

Jony furniture store examines its inventory policy and considers using an economic order quantity (EOQ) approach. They have the following information about a table set:
$\begin{array}{|l|l|}\hline\text { Annual demand } & 3,920 \text { sets } \\\hline \text { Current order quantity } & 80 \text { sets } \\\hline \text { Carrying cost } & \$ 80.00 / \text { set/year } \\\hline \text { Order cost } & \$ 200\\\hline\end{array}$
a.What is the current total annual cost (TC)?
b.What is the economic order quantity (EOQ)?
c.What is the total annual cost at the economic order quantity (EOQ)?