=+17-26 KKK EOQ, uncertainty, safety stock, reorder point OBJECTIVE 2 Stentson Ltd produces and sells hats. After
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=+17-26 KKK EOQ, uncertainty, safety stock, reorder point OBJECTIVE 2 Stentson Ltd produces and sells hats. After production, the hats are distributed to 20 warehouses around the country. Each warehouse services approximately 100 stores in its region. Stentson uses an EOQ model to determine the number of hats to send to each warehouse. Annual demand for the Brisbane warehouse is approximately 26400 hats. The ordering cost is $125 per order.
The annual carrying cost of a hat $5.75.
Required 1 Use the EOQ model to determine the optimal number of hats per order.
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