=+LG 3 P156 EOQ, reorder point, and safety stock Outdoor Living Manufacturers uses 1,000 units of a

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=+LG 3 P15–6 EOQ, reorder point, and safety stock Outdoor Living Manufacturers uses 1,000 units of a product per year. Its fixed cost is $28 per order, while the carrying cost is $5 per unit per year. The lead time is 5 days and, therefore, the firm keeps 7 days’ usage in inventory as safety stock. (Note: Use a 365-day year where required.)

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Principles Of Managerial Finance

ISBN: 9781292261515

15th Global Edition

Authors: Chad J. Zutter, Scott Smart

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