Question: D = 2 4 , 0 0 0 cases per year. S = $ 3 8 . 0 0 per order. I = 1 8

D =24,000 cases per year.
S = $38.00 per order.
I =18%
C = $12.00 per case.
L =3 days,
Working days per year =250 days
Determine the economic ordering point, total cost of goods for 1 year
Calculate the reorder point and indicate after how many days will the company start reordering?
When ordering with Q*, how much cost will the company save compared
to deciding to order 1200 products /1 time?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!