Annual demand for the Doll two-drawer filing cabinet is 50,000 units. Bill Doll, president of Doll Office
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Annual demand for the Doll two-drawer filing cabinet is 50,000 units. Bill Doll, president of Doll Office Suppliers, controls one of the largest office supply stores in Nevada. He estimates that the ordering cost is $10 per order. The carrying cost is $4 per unit per year. It takes 25 days between the time that Bill places an order for the two-drawer filing cabinets and the time when they are received at his warehouse. During this time, the daily demand is estimated to be 250 units.
(a) What is the economic order quantity?
(b) What is the reorder point?
(c) What is the optimal number of orders per year?
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Related Book For
Quantitative Analysis for Management
ISBN: 978-0132149112
11th Edition
Authors: Barry render, Ralph m. stair, Michael e. Hanna
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