Assume no safety stock or service level requirement

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Reference no: EM1385522

Given that unit cost = $25, annual carrying charge = 10%, annual demand = 4000 units and ordering cost = $15 per order. Assume that there are 50 weeks in the work year and 5 working days per week. The lead-time for the product is 2 weeks. The EOQ is:

If 200 units are ordered each time, then what will be the total annual holding cost?

If 200 units are ordered each time, how many orders will be placed in a year?
If 160 units are ordered each time, then the time between orders (in working days) is
If 200 are ordered each time, then what will be the total annual order cost?

assume no safety stock or service level requirement. In order not to run out of stock before the receipt of a new order, at what inventory level should the firm place an order? That is, what is the reorder point equal to?

Reference no: EM1385522

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