Calculate theEconomic Order Quantity(EOQ),Reorder Point, andTotal Annual Cost for one of the major sub-components used by this firm. Please note: you are supposed to build a single formula for each yellow box to perform the calculation without editing . Once finished, then in simple language, Please provide a short analysis of what these numbers indicate.

So in short, please provide a formula and answer for the the highlighted in yellow and provide a short synopsis of the formulas and how you got those answers. Please provide the formulas you used.

Transcribed Image Text:

Annual Demand Average daily demand 1000 1000 units 365 units/days per year Setup (ordering) cost Holding cost Costs per unit Lead time eseses $ 5.00 $ 2.00 $ 13.00 6 days EOQ Reorder point Total Annual cost Analysis: Raw Answer Rounded Annual Demand Average daily demand 1000 1000 units 365 units/days per year Setup (ordering) cost Holding cost Costs per unit Lead time eseses $ 5.00 $ 2.00 $ 13.00 6 days EOQ Reorder point Total Annual cost Analysis: Raw Answer Rounded

Answer rating: 100% (QA)

The economic order quantity EOQ is a companys optim... View the full answer