CHAPTER 12 - TECHNICAL CASE 12 Southeastern Bell Telephone stocks a certain switch connector at its central warehouse for supplying field service other the yearly demand for these connectors 15,000 units Southeastern Bolt estimates its annual holding costs for this item to be $25 per unit. The cost to place and process an order from the supplier is $75. Southeastern Bell operates 300 days per year, and the lead time to receive an order from the supplier is two working days. NOTE These are equations you will use a great deal - so calculate them and SHOW ALL THE WORK. Just giving me a numerical answer WILL NOT SUFFICE 1. Find the Economic Oldfie Quantity (Ook 2. Find the annual holding costs Find the manual ordering costs 4 What is the reorder point (ROPY? 5 Southeastern Bell knows that the supplier is often backordered they have not set a het system so they may miss a shipment and be a day late. Therefore, they want a safety stock of at least 2 days on hand. Calculate the ROP with a safety stock REMEMBER To calculate to - of units per order D Annual demand in units for the inventory item 5 - Setup or Order Costs for each order H - Holding costs Use the formules in the Power Point