Question: Southeastern Bell stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly demand for these connectors is 13,000. Southeastern
Southeastern Bell stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly demand for these connectors is 13,000. Southeastern estimates its annual holdings cost for this item to be $23 per unit. The cost to place and process and order from the supplier is $73. The company operates 280 days per year, and the lead time to receive an order from the supplier is 4 working days
1. what is the Economic order Quantity (EOQ)?
2. What is the Annual Holding Cost?
3. What is the Annual Ordering Cost?
4. What is the Reorder Point (ROP)?
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