Question: Can you show to calculations for the problem below? A museum of natural history opened a gift shop which operates 52 weeks per year. Top-selling

Can you show to calculations for the problem below?

A museum of natural history opened a gift shop which operates 52 weeks per year. Top-selling SKU is a bird feeder. Sales are 18 units per week, the supplier charges $60 per unit. Ordering cost is $45. Annual holding cost is 25 percent of a feeders value. Management chose a 390-unit lot size.

-What is the annual Total Cost of the current policy of using a 390-unit lot size?

-Would a lot size of 468 be better(TC)?

-Calculate the EOQ

-Total Cost (TC) for EOQ

-Cost savings vs. a, Cost savings vs. b.

-How frequently will orders be placed if the EOQ is used

-Suppose that the average demand is 18 units per week. The lead time is constant at two weeks. Determine the reorder point

- How many orders per year?

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