Demand for an item is 3650 units per year. Each unit costs $20 and each order placed costs $10. Annual inventory holding costs are 10% of the item cost. You are using a fixed order quantity method, and assume all the assumptions needed for EOQ are met. The lead time is 2 days. At what level of inventory (R) should you place your next order? 20 10 3650 191
Demand for an item is 3650 units per year. Each unit costs $20 and each order placed costs $10. Annual inventory holding costs are 10% of the item cost. You are using a fixed order quantity method, and assume all the assumptions needed for EOQ are met. The lead time is 2 days. At what level of inventory (R) should you place your next order? 20 10 3650 191
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Question
![Demand for an item is 3650 units per year. Each unit costs $20 and each order
placed costs $10. Annual inventory holding costs are 10% of the item cost. You are
using a fixed order quantity method, and assume all the assumptions needed for
EOQ are met. The lead time is 2 days. At what level of inventory (R) should you
place your next order?
20
10
3650
191](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4a3633f4-4533-4fad-a71a-6fc6482c3a88%2F9ee0c2c6-8ab1-4ff3-b145-89fd70afa8b3%2F80jvu5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Demand for an item is 3650 units per year. Each unit costs $20 and each order
placed costs $10. Annual inventory holding costs are 10% of the item cost. You are
using a fixed order quantity method, and assume all the assumptions needed for
EOQ are met. The lead time is 2 days. At what level of inventory (R) should you
place your next order?
20
10
3650
191
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