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Calculate the Economic Order Quantity, Total Annual Cost, Reorder Point, and ADDITIONAL Annual Cost (using a GRAPH) if the Procurement Manager increase the order quantity by 25% from the above EOQ.

Calculate the Economic Order Quantity, Total Annual Cost, Reorder Point, and ADDITIONAL Annual Cost (using a GRAPH) if the Procurement Manager increase the order quantity by 25% from the above EOQ.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Calculate the Economic Order Quantity, Total Annual Cost, Reorder Point, and ADDITIONAL Annual Cost (using a GRAPH) if the Procurement Manager increase the order quantity by 25% from the above EOQ.

A Departmental Store needs to determine the order quantities and reorder points for the various products it carries. The following data refer to a specific item in its product line. Cost to place an order - GBP 300 each Holding Cost – 10% of product cost per year Cost per unit – GBP 7.5 each Annual Demand – 200,000 Units Average Daily Demand – 200,000/365 Lead Time – 5 days
Transcribed Image Text:A Departmental Store needs to determine the order quantities and reorder points for the various products it carries. The following data refer to a specific item in its product line. Cost to place an order - GBP 300 each Holding Cost – 10% of product cost per year Cost per unit – GBP 7.5 each Annual Demand – 200,000 Units Average Daily Demand – 200,000/365 Lead Time – 5 days
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