What is the Economic Order Quantity (EOQ)? Calculate the reorder point, and the result must be interpreted. Calculate total inventory costs using the economic order quantity
What is the Economic Order Quantity (EOQ)? Calculate the reorder point, and the result must be interpreted. Calculate total inventory costs using the economic order quantity
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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![A regional distribution center buys an item of Mixer household electrical appliances
(Mixer) from several suppliers and sells them on demand to a local retailer. The
distributor works 5 days a week over 52 weeks of the year and the daily order is 100
units per day. Supply period is 3 days. The annual maintenance cost per unit is
$9.40 and the order preparation cost is $ 35.
Required:
What is the Economic Order Quantity (EOQ)?
Calculate the reorder point, and the result must be interpreted.
Calculate total inventory costs using the economic order quantity
When using the economy order quantity, calculate the expected time between orders
in days (Time Between Orders "TBO").](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4f4122bd-b812-4066-bd2d-21decdf5c27c%2Fe0628027-d2cd-41c4-b18f-dc4e2ebc3a8a%2Fskuaoui_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A regional distribution center buys an item of Mixer household electrical appliances
(Mixer) from several suppliers and sells them on demand to a local retailer. The
distributor works 5 days a week over 52 weeks of the year and the daily order is 100
units per day. Supply period is 3 days. The annual maintenance cost per unit is
$9.40 and the order preparation cost is $ 35.
Required:
What is the Economic Order Quantity (EOQ)?
Calculate the reorder point, and the result must be interpreted.
Calculate total inventory costs using the economic order quantity
When using the economy order quantity, calculate the expected time between orders
in days (Time Between Orders "TBO").
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