Question: supply chain management help please! EOQ - ECONOMIC ORDER QUANTITY is the main thing to know in this lesson. A Tier 1 automotive parts manufacturer

supply chain management help please!

supply chain management help please! EOQ -

EOQ - ECONOMIC ORDER QUANTITY is the main thing to know in this lesson.

A Tier 1 automotive parts manufacturer buys components from a supplier. For one particular part, the weekly demand is expected to average 10,250 units. Ordering is done online and is estimated to cost $45, including the cost of a quick parts inventory and payment. The company has determined that its inventory carrying costs are 18 percent per year. The product is valued at the supplier's facility at $186 each. You will send your own truck to pick up the shipment at an estimated cost of $2 per unit. The truck is big enough to handle almost any size shipment so only one truck will be needed per order. Show all of your work and you must label all of your answers for full credit. (A) What is the recommended economic order quantity for this product? (18 points) What does this mean? In other words, why is this the quantity you should order? Please explain your answer. (4 points) (B) How many times a year will you reorder the product? (6 points) Answer: (C) How often, in days, will you reorder? Assume 360 business days per year. (6 points) Answer: (D) If these parts come in cases of 500, how many units should you order? How many cases? (6 points)

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