Question: I need to find the EOQ point and re-order points for both items. Holding Cost 23% Inventory Holding Cost Now that Rosa had some real

I need to find the EOQ point and re-order points

I need to find the EOQ point and re-order points for both items.

Holding Cost 23% Inventory Holding Cost

Now that Rosa had some real information as to the nature of the problems, she needed to start developing solutions-and it appeared that it was important to come up with good solutions fast! The first thing she tried to do was take a couple of part numbers at random and see if she could improve on the ordering approach. The first number she selected was the A233 circuit board. The average weekly usage was 150, and the standard deviation of weekly demand was 54. The lead time was given as one week. The board cost $18, and the cost to place an order was given as $5. The quantity ordered to fill the bin was usually 300. The second number was the P656 power supply. It cost $35, but since the supplier only required a fax to order the cost was only $2 per order. Even with the fax, the delivery lead time was two weeks. The average weekly demand for the power supply was 180, and the standard deviation of weekly demand was 25. The company typically ordered 400 units at a time. Recently the supplier for the circuit board hinted that it might be able to give Mark's a price break of $0.50 per board if Mark's would order 400 or more at a time

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