Question: Operations Management N .. The following information is provided for an item: : Annual usage = 12,000 units, ordering costs = * 60 per order,

Operations Management Operations Management N .. The following

N .. The following information is provided for an item: : Annual usage = 12,000 units, ordering costs = * 60 per order, carrying costs 10%, unit cost of item = * 10 and lead time = 10 days. There are 300 working days/year. Determine E.O.Q. and number of orders per year. In the N past two years the use rate has gone as high as 70 units per day. For a reordering system based on the inventory level, what should be the safety stock? What should be the reorder level at this safety stock ? What would be the carrying costs for a year

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