Question: A local distributor for a packaging machine manufacture expects to sell approximately 10 000 machines . Annual carrying cost is $2500 per machine and order

A local distributor for a packaging machine manufacture expects to sell approximately 10 000 machines . Annual carrying cost is $2500 per machine and order costs is $10 000.The distributor operates 300 days a year.

I. Using the above information determine the EOQ.

ii. How many times will the store need to reorder.

iii. Determine the length of the order cycle .

iv. What will be the Total Annual Cost if EOQ is ordered?

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