Samibush11/27/10
Economic Order quantity: You need $50000 cash throuout the year. your time is worth $100 per hour and it takes half an hour to get cash from your ATM. your bank is paying 5 percent per annum passbook savings.
1. what is the EOQ?
2. What is the total cost at the EOQ?
3. How many times per year will you visit the ATM?