ABC Co. purchases an item. The annual demand for this is 75000 unites. The ordering cost is
Question:
ABC Co. purchases an item. The annual demand for this is 75000 unites. The ordering cost is $60 per order. The holding cost is $4 per unit per year. The lead time for this item is 3 days. Assume 250 working days per year.
Find :
A) Economic production quantity, EOQ
B) What is optimal number of orders per year
C) What is the annual cost of ordering and holding inventory
D) What is the re-order point
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