Question: Below is output from QM for a Basic EOQ Model Parameter Value Parameter Value Demand rate (D) 64000 Optimal order quantity (Q*) 3200 Ordering cost

Below is output from QM for a Basic EOQ Model

Parameter Value Parameter Value

Demand rate (D) 64000 Optimal order quantity (Q*) 3200 Ordering cost (S) 2000 Maximum Inventory Level3200 Carrying cost (H)25 Average inventory 1600

Orders per period (year) 20

Annual Ordering cost40000

Annual Carrying cost40000

Total Inventory Cost80000

This business operates 250 days a year. The lead time is 6 days. Use this information to answer questions below.

37. The order cycle time in days is

A. 12.5

B. 20

C. 2560

D. None of the above

38. The reorder point is

A. 256

B. 533

C. 1536

D. 5120

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