Question: A. INVENTORY MANAGEMENT - BASIC ECONOMIC ORDER QUANTITY (EOQ) BamBam is attempting to perform an inventory analysis on one of his most popular products. Annual

A. INVENTORY MANAGEMENT - BASIC ECONOMIC ORDER QUANTITY (EOQ)

BamBam is attempting to perform an inventory analysis on one of his most popular products. Annual demand for this product is 5,000 units. Carrying cost is RM50 per unit per year and the order costs for his company is typically run nearly RM30 per order. Lead time averages 10 days. If 250 is the number of working says per year. Determine the following:

What is the economic order quantity (EOQ)?
What is the average inventory?
What is the optimal number of orders per year (N)?
What is the optimal number of working days between orders (T)?
What is the total annual inventory cost?
What is the reorder point (ROP)?

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