A local computer shop decided to use the EOQ model to formulate an inventory management system for
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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 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 =
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date: