Find the economic order quantity

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Reference no: EM133437521

Assignment:

Southeastern 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 and process an order from the supplier is $75. The company operates 300 days per year, and the lead time to receive an order from the supplier is 2 working days.

a. Find the economic order quantity.

b. Find the annual holding costs.

c. Find the annual ordering costs.

d. What is the reorder point?

Reference no: EM133437521

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