Question: Benitez Security Systems has an annual demand for a camera security system of 1500 units. The cost of the camera system is $300. The carrying
Benitez Security Systems has an annual demand for a camera security system of 1500 units. The cost of the camera system is $300. The carrying cost rate is estimated at 30%, and the ordering cost is $30 per order. If the owner orders 500 she can get a 2% discount on the cost of the cameras. The company operates 300 days per year, therefore the daily demand is 5 units per day and the lead time to receive an order from the supplier is 5 days. What should be their ordering amount based on EOQ? . What are the total costs based on EOQ? . What are the total costs if they take the discount? . Provide the optimal inventory policy: Q = . R =
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