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Anderson florists likes to keep orchids always on hand. annual demand is 1000 orchids per month, it costs $300 per order, and Anderson florists experiences a 15% holding cost of the $60 orchid unit cost.
a. find the EOQ
b. determind optimal number of orders per year
c. calculate th annual holding cost
d. assuming a lead time of 1 week, determine Anderson reorder point
e. assuming a standard deviation of 100 orchids per month, how much saftey stock should Anderson Florists order to be 95% confident of not stocking out in a given month?
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