Assignment

You sell $16,000$ loaf of bread per year. The carrying cost associated the main ingredient wheat flour is estimated to be $$8$ per unit $($amount used for $1$ loaf of bread$)$ per year, and the ordering cost is $$10$ per order. And assume $1$ year is $300$ days and lead time is $3$ days.

$1-$ What is the EOQ?

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$2-$ How much money you will lose if you order $300$ units of wheat flour? Calculate the total cost of inventory with EOQ model and with order size is $300.$ The difference will give you the answer.

$3-$ Calculate the re$-$order point $($assuming no uncertainty$)?$