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

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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