Question: if a company has a demand for a given item = 25,000 units per year and holding/carrying cost per item is 8% of the unit
if a company has a demand for a given item = 25,000 units per year and holding/carrying cost per item is 8% of the unit cost and the ordering cost is $450; Assuming that the unit purchasing cost per unit is $50. a) Find optimal quantity they should order, EOD? b) Determine avg. inv per year c) Find the carrying cost per year d) ordering cost per year e) how many times should they oorder per year? f) find the order cycle time assuming they work 250 days per year g) find the reorder point, if the lead time is 6 days.
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