Find the economic order quantity and the reorder point for the following information: annual demand is 22,500

Question:

Find the economic order quantity and the reorder point for the following information: annual demand is 22,500 units, order cost is $70 per order, annual inventory carrying cost is $5 per unit, the order lead time is 10 days, and the business operates 300 days per year.

Economic Order Quantity
Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs. This production-scheduling model was developed in 1913 by Ford W. Harris and has...