Question: 5 . A hardware store estimates the demand on number 6 screws as 7 , 0 0 0 screws per month. The cost of filling
A hardware store estimates the demand on number screws as screws per month. The cost of filling out the forms to place an order is $ The annual holding cost rate of a screw is The cost per screw is cents. The lead time is six days, and the store is open days per year, assuming days per month. Determine the following:
a The economic order quantity. Points
A
b The reorder point assuming no safety stock. Points
A
c The number of orders per year. Points
A
d The time between orders. Points
A
The total annual cost. Points
A
f Redo all the previous calculations in Excel and plot the cost curves and highlight the EOQ. Points
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