Solution-What is inventory level at which reorder should be

What is inventory level at which reorder should be replaced

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Reference no: EM132949848

Question - Gem Electronics bases its inventory replenishment decision on an EOQ model. The ordering costs are P50, the storage costs are P.40 per unit of inventory and the EOQ is 2,000 units. If Gem wishes to maintain a safety stock of 1,000 units and it takes 10 days to receive an order, what is the inventory level at which a reorder should be replaced? (Assume a 365-day year).

Reference no: EM132949848

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What is inventory level at which reorder should be replaced

Reference no: EM132949848

Reference no: EM132949848

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