A local computer shop decided to use the EOQ model to formulate an inventory management system for their monitors The monitors are demanded 52 weeks a year, below are more information that you will need Item cost $ 150 00 Order cost $ 120 00 Annual holding cost ( ) 30 of item cost Annual demand 780 Average weekly demand 15 per week Standard deviation of weekly demand 3 per week Lead time 3 weeks Service probability 95 Determine the order quantity and reorder point (round to the nearest whole number Optimal order quantity Reorder point Determine the annual holding and order costs (round to 2 decimal places Annual Holding Cost Annual Ordering Cost

Question: A local computer shop decided to use the EOQ model to formulate an inventory management system for their monitors. The monitors are demanded 52 weeks

A local computer shop decided to use the EOQ model to formulate an inventory management system for their monitors. The monitors are demanded 52 weeks a year, below are more information that you will need:

Item cost	$	150.00
Order cost	$	120.00
Annual holding cost (%)	â?¯	30 % of item cost
Annual demand	â?¯	780
Average weekly demand	â?¯	15 per week
Standard deviation of weekly demand		3 per week
Lead time		3 weeks
Service probability		95 %

Determine the order quantity and reorder point (round to the nearest whole number

Optimal order quantity =

Reorder point =

Determine the annual holding and order costs (round to 2 decimal places

Annual Holding Cost =

Annual Ordering Cost =

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