Find out the economic order quantity

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Reference no: EM1373341

Q. South-eastern Bell stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly demand for these connectors is 15,000 units. South-eastern estimates its annual holding cost for this item to be $25 per unit. The cost to place also process an order from the supplier is $75. The Corporation operates 300 days per year also the lead time to receive an order from the supplier is 2 working days.

a) Find out the economic order quantity.

b) Find out the annual holding costs.

c) Find out the annual ordering cost

d) Elucidate what is the ordering point

Reference no: EM1373341

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