Problem

$1$

$($EOQ and TAC$)$:

Annual Demand $=60,000$

Ordering cost$=$$$25$per order

Holding cost $=$$$3$ per item per year

N$.$of working days per year $=240$

Calculate:

Q $($EOQ$)$

TAC $($Total Annual Cost$)$

Number of Orders Per Year

Daily Demand

Time between orders

Reorder point if lead time $=3$days $($lead time