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Calculate total annual cost inventory cost using eoq

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Reference no: EM132691131

A repair shop uses 60,000 units of a part each year. (A Maximum consumption of 100 units per working day). It costs $30 to place and receive an order. The shop orders $5 to carry one unit per year of inventory.

Question a.) Calculate total annual ordering cost

Question b.) Calculate total annual carrying cost

Question c.) Calculate total cost

Question d.) Calculate EOQ

Question e.) Calculate the total annual cost inventory cost using EOQ inventory.

Question f.) How much save using EOQ?

Question g.) Compute ordering point assuming the lead time to be 3 days.

Reference no: EM132691131

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