Please provide all the steps you took.

Given this information:

• A museum of natural history opened a gift shop which operates 52 weeks per year.
• Top-selling SKU is an authentic replica of a (pretty dangerous) stone-age spear.
• Sales are 20 units per week, the supplier charges $70 per unit.
• Ordering cost is $60.
• Annual holding cost is 20 percent of a spears value.
• Management chose a 390-unit lot size.

Please calculate the economic order quantity (EOQ)

94.5

95

94

1040

Question 2

What is the total annual inventory cost, or TAIC, of the EOQ calculated above?

$74,121.84

$74,120.00

Not enough information to calculate TAIC

$80,140.00

Question 3

What is the total annual inventory cost, or TAIC, of the policy that is currently in place (390 units per lot)?

$1,568.18

$76,000

$74,120.00

$75,690.00

Question 4

Compare the annual inventory cost of the current policy (390) to the annual inventory cost of the EOQ calculated below. Which is more appealing?

Policy calculated in the EOQ is more appealing

Impossible to say, appeal is in the eye of the beholder.

Current policy is more appealing

Question 5

What is the time between order, calculated in weeks, for the optimal policy

136.88

33.74

19.5

4.75

5