Question: Levine electrical supply purchases copper wire for $5.25per pound form their supplier. The annual usage of copper wire is 250,000 pounds. This copper is imported

Levine electrical supply purchases copper wire for $5.25per pound form their supplier. The annual usage of copper wire is 250,000 pounds. This copper is imported from Peru and each oder costs$500 to place the order, track and trace the international order, clear customs,and arrange for delivery. The cost of carrying inventory is 20%

Q1 what is the economic order quantity for this product?

Q2 If ordering the economic order quantity, what will be the annual ordering cost?

Q3 If ordering the economic order quantity, how many orders per year will be placed?

Q4 Now consider there is a six week lead time for the product. Safety stock is set at 4 weeks of product. what is the re-order point? (hint: reorder point is demand during lead time pus safety stock)

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