PROJECT & OPERATIONS MANAGEMENT QUESTION

Question 4b b) Suppose that the Dekmal Beauty Sdn. Bhd has a skincare product that shows a constant annual demand rate of 6500 units. A unit of skincare product costs the company RM500. Ordering costs are RM300 per order and holding costs are 20% of the value of the inventory. Dekmal Beauty Sdn. Bhd has 250 working days per year, and the lead time is 4 days. Identify the following aspects of the inventory policy; (2) i. Economic order quantity (2) ii. Reorder point (2) iii. Cycle time (2) (2) iv. Total annual cost Draw the EOQ Model Inventory Pattern with the value of lead time and the values of EOQ, reorder point, and cycle time that you found in part (i), (ii), and (iii)