Question: KRAY Electronics is forecasting next year's optimal order size. The total demand is 1 2 , 8 9 0 units, with a carrying cost of

KRAY Electronics is forecasting next year's optimal order size. The total demand is 12,890 units, with a carrying cost of $2 per unit. the cost of placing an order is $100.
Calculate the E0Q
If it takes 14 days to receive an order from suppliers, at what inventory level should another order be placed? Assume that KRAY Electronics uses 12890 units every 250 days.
Calculate the total ordering cost
Now assume that carrying cost is expected to increase by 6% in 2024 due to increase in rentals of warehouse space. Determine the effect on E0Q.

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