Question: ABC Electronics stocks a certain switch connector at its central warehouse for supplying Natural gas fields service offices. The yearly demand for these connectors is

ABC Electronics stocks a certain switch connector at its
central warehouse for supplying Natural gas fields service
offices. The yearly demand for these connectors is
200,000 units. The company estimates its annual holding
cost for this item to be L.E.250 per unit. The cost to place
and process an order from the supplier is L.E.65. The
company operates 300 days per year, and the lead time to
receive an order from the supplier is 30 working days.
a)Find the economic order quantity.
b)Find the annual holding costs.
c) Find the annual ordering costs.
d)What is the reorder point?
Recalculate the previous results if the warehouse manager
of the company decides to consider a 5% risk level of stockout (assume a suitable value of sigma)

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