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Food Service Manager Exam Prep

Category - Management

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Based on the following information, what would the economic order quantity (EOQ) be for dishwasher detergent?Fixed Cost (F) = $15Demand (D) = 75 gallons per yearCarrying Cost (C) = 20%Purchase Price (P) = $12/5 gallon pail

43.5
15.8
30.6
22.4

Explanation

Answer: C - The EOQ for dishwasher detergent would be 30.1. This is calculated by using the standard EOQ formula, which is:

Square root of: (2 x F x D) =
(C x P)

Square root of: (2 x 15 x 75) = 30.6
(0.20 x 12)

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