What is the economic order quantity

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G's Boeing orders a small part (component) used in many of its wing assemblies. Below is some information on this part: Cost per case = $395 Parts per case = 100 Daily usage of parts per day (demand) = 25 Standard deviation of daily demand = 7 Purchasing lead time (in days) = 15 Desired service level = 98% Ordering (administrative) costs = $200 Annual interest earned on cash = 10% What should be the safety stock for this part (in parts, not cases)? (Display your answer to two decimal places.) Spell check What should be the reorder point (in parts, not cases)? (Display your answer to two decimal places.) Spell check What is the economic order quantity (in parts, not cases)? (Display your answer to the nearest whole number.)

Reference no: EM131626823

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