Taizhou Products consistently uses 800 units per year. The product has a carrying cost of $50 per unit per year and an order cost of $300 per order. It takes 30 days to receive the shipment after the order is placed, and the company requires a 5-day usage safety stock in its inventory. (A) Calculate the economic order quantity (EOQ). (B) Determine the reorder point. (Assume the year has 360 days)

Answer rating: 100% (QA)

To calculate the economic order quantity EOQ we can use the following formula EOQ 2 D S H where D ... View the full answer