Lindseys Equine Treats has an annual usage of 16,000 kg of oats, economic order quantity of 2,100

Question:

Lindsey’s Equine Treats has an annual usage of 16,000 kg of oats, economic order quantity of 2,100 kg of oats, average usage of 120 kg per day including normal spillage, and a lead time of 5 days. Lindsey only bakes equine treats 3 days per week and needs to keep a safety stock of one week’s worth of oats. Determine the re-order point for oats.

Economic Order Quantity
Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs. This production-scheduling model was developed in 1913 by Ford W. Harris and has...