Please explain the below problem and show the calcuation correct answers are at the end of the problem.

The Larkspur Furniture Company's chair manufacturing requires multiple shades of wood stain. The most popular stain color is "Warm Oak”. The company's production operation uses 560 cases per year of this stain. The ordering cost is $43 per order. The company estimates the holding costs at $8 per case per year. The lead time to receive a shipment from the supplier is 5 days. The company operates 250 days per year.  

What is the optimal number of cases to order at a time?

The Larkspur Furniture Company's chair manufacturing requires multiple shades of wood stain. The most popular stain color is "Warm Oak”. The company's production operation uses 560 cases per year of this stain. The ordering cost is $43 per order. The company estimates the holding costs at $8 per case per year. The lead time to receive a shipment from the supplier is 5 days. The company operates 250 days per year.  

What is the average number of cases on hand?

The Larkspur Furniture Company's chair manufacturing requires multiple shades of wood stain. The most popular stain color is "Warm Oak”. The company's production operation uses 560 cases per year of this stain. The ordering cost is $43 per order. The company estimates the holding costs at $8 per case per year. The lead time to receive a shipment from the supplier is 5 days. The company operates 250 days per year.  

How many orders per year will there be for this inventory item?

Answer rating: 100% (QA)

To find the optimal number of cases to order at a time EOQ we can use the Economic O... View the full answer