How much should be ordered in each replenishment lot

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Reference no: EM131192673

Demand for the deskpro PC at Best Buy is D=1000 units/mo. Ordering cost=$4000/order, each PC costs $500 and holding costs are 20% of the cost/unit/yr.

a. How much should be ordered in each replenishment lot (EOQ)?

b. What is the # of orders/yr.?

c. What is the total cost of this ordering policy ?

d. What is the average flow time (EOQ/2D)?

Reference no: EM131192673

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