Question: For this assignment, you will calculatethe EOQ and reorder point for each of the book types. Lead time for any type of book is 5
For this assignment, you will calculatethe EOQ and reorder point for each of the book types. Lead time for any type of book is 5 weeks.
Assume the demand data given in the spreadsheetModule 5 EOQ Data.xlsxDownload Module 5 EOQ Data.xlsxis normally distributed. The accounting department estimates the average costs for A, B, and C books to be $5.05, $7.39, and $10.25, respectively, for a single copy. It costs 45% per year, per unit, for annual holding costs. The batch size is 3,500 for an A book, 1,000 for a B book, and 500 for a C book. The administrative cost for ordering a batch of a book has been estimated to be $125.
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