Robertson Company has developed the following figures to assist in controlling one of its inventory items:
Minimum daily use 150 units
Normal daily use 200 units
Maximum daily use 230 units
Working days per year 250
Lead time in working days 10
Safety stock 300 units
Cost of placing an order $80
Order quantity 4,000 units
Required:
Compute the following:
(1) Order point
(2) Normal maximum inventory
(3) Absolute maximum inventory
(4) Assuming demand is uniform and the EOQ formula is applicable, determine the cost of storing one unit for one year.