Find the economic order quantity and annual total cost

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Reference no: EM131553513

Mike King uses 2,000 per year of a certain subassembly that has an annual holding cost of $0.10 per unit. Each order placed costs Mike $4.00. Mike operates 200 days per year and has found that an order must be placed with his supplier 2 working days before he can receive that order. For this subassembly, find: (a) the economic order quantity. (b) the annual total cost (i.e., holding and ordering costs) (c) the optimal number of orders per year. (d) the optimal number of days between 2 orders. (e) the reorder point.

Reference no: EM131553513

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