03) Halifax Souvenir Company currently orders 500 units four times each year. Each ordercosts $12 and each unit costs $1.20 per year to carry. On average, it takes 5 days to receivean order from the supplier. The company operates 250 days per year.Required:1. What is the EOQ?2. Calculate total annual inventory cost under EOQ.3. What is the current inventory cost?4. What is the re-order point?

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Answered: Halifax Souvenir Company currently…

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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Halifax Souvenir Company currently orders 500 units four times each year. Each order costs $12 and each unit costs $1.20 per year to carry. On average, it takes 5 days to receive an order from the supplier. The company operates 250 days per year.