Question: b) what is the average inventory? (round to nearest whole number) c) what is the optimal number of orders per year? (round to nearest whole

b) what is the average inventory? (round to nearest whole number)
c) what is the optimal number of orders per year? (round to nearest whole number)
d) what is the optimal number of working days between orders? (round to two decimal places)
e) what is the total annual inventory cost? (round to nearest cent)
f) what is the reorder point? (round to nearest whole number)
Rick Jerz is attempting to perform an inventory analysis on one of his most popular products. Annual demand for this product is 5,000 units; carrying cost is $55 per unit per year; order costs for his company typically run nearly $40 per order; and lead time averages 8 days. (Assume 250 working days per year.) a) The economic order quantity is units (round your response to the nearest whole number)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
