Sheri's Stereo specializes in electronic equipment and uses 2500 of a particular component during the course...

   

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Sheri's Stereo specializes in electronic equipment and uses 2500 of a particular component during the course of a year. The lead time is constant at 2 business days (Assume 250 days per year). The cost of placing an order is $18.75, and the holding cost is $1.50. a) Find the economic order quantity (EOQ)? b) What is the total annual cost of managing the inventory? c) What is the optimal number of orders per year? d) What is the time between orders? Sheri's Stereo specializes in electronic equipment and uses 2500 of a particular component during the course of a year. The lead time is constant at 2 business days (Assume 250 days per year). The cost of placing an order is $18.75, and the holding cost is $1.50. a) Find the economic order quantity (EOQ)? b) What is the total annual cost of managing the inventory? c) What is the optimal number of orders per year? d) What is the time between orders?