Question: Referring back to Sam's basic EOQ model, namely monthly demand is 2500 units, unit holding cost is $10 per unit per month, and each order
Referring back to Sam's basic EOQ model, namely monthly demand is 2500 units, unit holding cost is $10 per unit per month, and each order costs us $200, assuming 9 month per year and a purchase cost of $10 per unit, and additionally assuming that there are 250 days per year, what is the optimal number of days between orders? Optimal Number of Orders =QD Optimal number of days between each order =OptimalNumberofOrdereNumberofDoysDuringtheYear 212 3.51 4.75 5.50 6.22
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
