Tratix company has been in industry for 10 years. They sell in the France market only. They
Question:
Tratix company has been in industry for 10 years. They sell in the France market only.
They have 100 employees. T
hey sell 1,500,000 units on average per year.
This year, they expect the demand to raise 15% due to COVID19 constrains reduction.
It takes 0.5h for a normal employee to process an order and email it out to our suppliers.
Tratix has a factory and warehouse with very tight space to produce current demand, so they need to manage space and shipments and deliveries very careful.
They have a good agreement with the transport company and for a dedicated truck they only pay 3€/Km (whatever the number of units we order).
Holding stock, costs 3€ a year Last week Tratix commercial Director went to negotiate new prices with their only one supplier that is 350Km far from the factory/warehouse, and he could get a new price per unit of 2€/unit. Labor cost is 18€/h flat rate in all the areas and employees in the company.
As per the EOQ ( Economic Order Quantity) model, calculate Quantity to order, expected number of orders they should place during the year, optimal time between orders and the Total Cost
