Cohen Industrial Products uses 2,100 switch assemblies per month and then reorders another 2,100. The relevant carrying

Question:

Cohen Industrial Products uses 2,100 switch assemblies per month and then reorders another 2,100. The relevant carrying cost per switch assembly is $20 every year, and the fixed order cost is $300. The plant operates 250 days in a year and maintains a safety stock of 2 days’ worth of switch assemblies since the lead time to receive orders is 3 days. Calculate the economic order quantity (EOQ) and the reorder point.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Principles Of Managerial Finance

ISBN: 9781292018201

14th Global Edition

Authors: Lawrence J. Gitman, Chad J. Zutter

Question Posted: