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Given the following data, solve for the Economic Order Quantity time requested beow:
Data:
Plumbing Supplies Inc. sells 2,500 bathroom sinks per month
Plumbing Supplies Inc. purchases 5,000 bathroom sinks per order
Lead time to receive an order 12 days.
Cost to place an order is $30
Annual cost to hold one sink in inventory is $5.75
Question: Under its present policy of purchasing 5,000 sinks per order, what is Plumbing Supplies total annual inventory cost?
Calculate the Economic Order Quantity for Plumbing Supplies Inc.
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