Tacky Souvenirs sells lovely handmade tablecloths at its island store. These tablecloths cost Tacky $20 each. Customers want to buy the tablecloths at a rate of 350 per week. The company operates 52 weeks per year. Tacky, the owner, estimates his ordering cost at $75. Annual holding costs are 25 percent of the unit cost. Lead time is 2 weeks. Using the information given

a) Calculate the economic order quantity.

b) Calculate the total annual costs using the EOQ.

c) Determine the reorder point.

Answer rating: 100% (QA)

The economic order quatity EOQ is the order quantity that minimizes the total h... View the full answer