Question: Calculate using EOQ analysis 6. TU bookstore has been buying tablets in an optimal fashion using EOQ analysis. The ordering cost is $100 per order.
Calculate using EOQ analysis
6. TU bookstore has been buying tablets in an optimal fashion using EOQ analysis. The ordering cost is $100 per order. The carrying cost is $1.50 per unit per month. The product cost is $650 per unit. From the last year record, its total sale was 12,500 units. It is expected to have 20% increase for this year owing to the introduction of new features of the product. The bookstore operates 250 days per annum. 6.1) In order to get the cheapest of the total costs, what is the optimal order quantity for this year? (1 point) 6.2) What is total annual ordering and carrying costs for this year if the bookstore manager wants to buy this product of 3,750 units per quarter? (1 point) 6.3) If the supplier can deliver the whole order by 3 working days after receiving the order, what is the appropriate reorder point (ROP) for this year? (1 point)
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