Question: Prableme 3 ( 4 9 points ) to the cectral Morciceab warehouve thet is located in Casablimea. The company wants to establish in to 1
Prableme points to the cectral Morciceab warehouve thet is located in Casablimea. The company wants to establish in to units. Eacts time an order is placed, the company incurs a fived cost of DH that covers crder placement, traniportation to the comporny's warehooses, and handling of the unis. Ench unit costs ElectroMar in material cose and the holding cost per year expressed as a fraction of unit value is estimuted to be
Part I
Using the EOQ formula, evaluate the optimal lot size that the company should order in each replenishment loe, and determine the corresponding cycle inventon.
Derermine the optimal onder frequency expressed in number of orders per year corresponding to Q
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