The consumption of glue in the Ansari furniture workshop is estimated to be 18,000 liters in the next six months (180 days). This raw material will be consumed at a fixed rate, and the cost of storing each liter of it per month is one hundred Tomans, and the cost of ordering it for each order; It is 6000 Tomans.
A) How many liters is the optimal order level (EOQ)? in optimal condition; What is the storage cost, order cost and total costs related to this inventory item?
B) If it takes three days from the order announcement to receiving the balance (DAYS 3 = TIME LEAD), where will the order point (OP) be? If this workshop wants to keep 1000 liters of safety stock (STOCK SAFETY = 1000 LITERS), what will be the order point?

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A Optimal order level EOQ and related costs The economic order quantity EOQ is the optimal order qua... View the full answer