Question: Using the information below, calculate reorder point and total cost for the company that utilizes EQO model. Annual demand = 20,000 Annual holding cost =

Using the information below, calculate reorder point and total cost for the company that utilizes EQO model.

Annual demand = 20,000

Annual holding cost = $10/unit

Ordering cost = $75

Lead time = 5 days

300 units & $3,000

400 units & $5,477

200 units & $2,000

350 units & $5, 277

400 units & $5,350

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