Problem

$1$

$($

EOQ and TAC

$)$

:

Annual Demand

$=$

$6$

$0$

$,$

$0$

$0$

$0$

Ordering cost

$=$

$

$2$

$5$

$$per order

Holding cost

$=$

$

$3$

$$per item per year

No

$.$

$$of working days per year

$=$

$2$

$4$

$0$

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

$<$

$$time between orders

$)$