Question: 10 points II. III Consider an com with item cost 50 AED. The cost per order is 25 AED and holding costs 20% of the
10 points II. III Consider an com with item cost 50 AED. The cost per order is 25 AED and holding costs 20% of the tem cost. Daly demand is units. The suppler takes 14 days to deliver the products. Assume that demand is constant. Also assume that working days in a year are 300 What shall be economic order quantity? What shall be reorder point to run this inventory system? What shall be total annual cost to run this inventory system? D Q TC = DC + S + H 2DS Q EOQ = Q = H Constant Demand R = dl Random Demand R = dL + 20 SS = ZOL zovi
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