Items purchased from a vendor cost $20 each, and the forecast for next year's demand is 1000 units. If it costs S5 each time an order is placed for more units and the holding costs arc S4 per unit per year. The lead time is two days.

a. What quantity should be ordered each time?
b. What is the maximum inventory?
c. What is the average inventory?
d. What is the total ordering cost per year?
e. flow many orders arc placed per year?

Answer rating: 100% (QA)

a The EOQ 2AO C where A is annual demand O is ordering ... View the full answer