Question: (a) Define EOQ model. (1) (b) Given a product with the following parameters Annual Demand =1500 units Holding cost per year = SAR 5 per

(a) Define EOQ model. (1) (b) Given a product with the following parameters Annual Demand =1500 units Holding cost per year = SAR 5 per unit Order cost = SAR 100 per order Working days per year =250 What is the EOQ for this product? (1) - How many orders should be processed per year? (1) - What is the expected time between orders? (1) - Determine total annual cost. (1) - If lead time 4 days, calculate re-order point. (1)

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