The demand for NAIT Masks is 4,000 units per month. Ordering cost is $25 per order....
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The demand for NAIT Masks is 4,000 units per month. Ordering cost is $25 per order. Holding cost is estimated at 30% of product cost. The product cost is $50 per unit. 1. What is the EOQ? 2. What would be the number of orders per year using this EOQ? 3. What would be the annual holding costs ignoring any safety stock? 4. What would be the annual ordering costs? 5. What is the reorder point? Assume: 1. four weeks/month and 12 months/year 2. lead time to get deliveries of orders is one week 3. variance of demand is 225 (Hint: this is not standard deviation) 4. NAIT Masks wants to ensure that their masks are available 23 out of 25 times. The demand for NAIT Masks is 4,000 units per month. Ordering cost is $25 per order. Holding cost is estimated at 30% of product cost. The product cost is $50 per unit. 1. What is the EOQ? 2. What would be the number of orders per year using this EOQ? 3. What would be the annual holding costs ignoring any safety stock? 4. What would be the annual ordering costs? 5. What is the reorder point? Assume: 1. four weeks/month and 12 months/year 2. lead time to get deliveries of orders is one week 3. variance of demand is 225 (Hint: this is not standard deviation) 4. NAIT Masks wants to ensure that their masks are available 23 out of 25 times.
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1 What is the E O Q ANS WER The E O Q is 1 000 units WORK ING EO Q 2 1 000 25 0 3 50 EO Q 1 000 unit... View the full answer
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