A lamp factory plans to sell 5,000 units of a lamp in the next year. All products planned for production use the same lights (2 units per lamp);therefore, demand for the lights for the next year is known to be 10,000 units. The purchasing agent wants to know how many lights to buy at one time.Historically, lights have been received two days(lead time) after they were ordered. It costs $ 25 to order lights, and the holding-cost fraction used by the company is 20 % per year. The lights cost $ 0.45 each.

 With this Information:

 a. Compute the Economics Order Quantity.

b. Compute the number of orders per year.

c. How long is the frequency of orders? Assume the company works 365 days a year.

d. The company works with a Safety stock 0.5 days. Compute the units of this stock.

e. Compute the Reorder Point 

f. Compute the Average Stock 

g. Compute the total Holding Cost

h. Compute the total Ordering Cost

I. Compute the total Cot of Stock Management

j. Draw the evolution of stock in time.

Answer rating: 100% (QA)

Answer Stock Level EOQ Reorder Point Lead Time Time days In thi... View the full answer