Question: 10 EOQ and Reorder point, (a) The City Bakery uses 10,800 kilogrammes of dried fruit ingredients per year. If ordering costs are 10 per order

10 EOQ and Reorder point,

(a) The City Bakery uses 10,800 kilogrammes of dried fruit ingredients per year. If ordering costs are £10 per order and the carrying cost is

£5 per kilogramme per year, calculate the economic order quantity,

(b) If it takes 3 days from order to delivery, calculate:
(i) The reorder point. Assume a 360 day year.
(ii) The reorder point assuming a safety stock of 2 days.

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