The Bolger company has obtained the following data: Assumption 1: Working days per year Normal use...

 

Transcribed Image Text:

The Bolger company has obtained the following data: Assumption 1: Working days per year Normal use per day Maximum use per day Minimum use per day Lead time 5 days Variable cost of placing one order Variable carrying cost per unit $1 250 Required: a) Economic Order Quantity c) Ordering Point (Reorder Level) e) Absolute Maximum Inventory time and usage Assumption 2: Working days per year Annual usage Maximum use per day Lead time Cost of placing one order Carrying cost percentage Per unit cost of material 250 10% $10 500 units 600 units 100 units Required: a) Economic Order Quantity c) Ordering Point (Reorder Level) $36 b) Safety Stock Maximum d) Normal Maximum Inventory f) Average inventory assuming normal lead 5 days 125,000 units 600 units $36 b) Safety Stock Maximum || The Bolger company has obtained the following data: Assumption 1: Working days per year Normal use per day Maximum use per day Minimum use per day Lead time 5 days Variable cost of placing one order Variable carrying cost per unit $1 250 Required: a) Economic Order Quantity c) Ordering Point (Reorder Level) e) Absolute Maximum Inventory time and usage Assumption 2: Working days per year Annual usage Maximum use per day Lead time Cost of placing one order Carrying cost percentage Per unit cost of material 250 10% $10 500 units 600 units 100 units Required: a) Economic Order Quantity c) Ordering Point (Reorder Level) $36 b) Safety Stock Maximum d) Normal Maximum Inventory f) Average inventory assuming normal lead 5 days 125,000 units 600 units $36 b) Safety Stock Maximum ||