Solution-Calculate soda reorder point

Calculate soda reorder point

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Reference no: EM132746613

Soda Corporation is a manufacturer of cooling products. It purchases 14,400 units of a particular component (CK55) each year at a cost of $60 per unit. Soda Corporation requires a 12% annual rate of return on investment. In addition, relevant carrying costs for insurance, material-handling, breakage are $2.40 per unit per year. Relevant costs per purchase order are $144.

Required:

Problem 1: Calculate Soda EOQ for CK55.

Problem 2: Calculate Soda total ordering and carrying costs using EOQ.

Problem 3: Assume that demand is uniform throughout the year and is known with certainty. The purchasing time is half a month. Calculate Soda reorder point for CK55.

Reference no: EM132746613

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Calculate soda reorder point

Reference no: EM132746613

Reference no: EM132746613

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