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3) Harowing Company has the folowing information Annual demand Order size Ordering cost per order Carrying costs per unit for one year Maximum daily use
3) Harowing Company has the folowing information Annual demand Order size Ordering cost per order Carrying costs per unit for one year Maximum daily use Work year Required 3,500 units 500 units A-Fot A-208 $400 A $40 Lead time (maximum 20 days) 25 units 250 days 10 da a. Determine the economic order quantity for Harrowing. b. What is the annual savings to Harrowing Company if it was to change from an order size of 1,000 to the economic order quantity? What is the reorder point? c
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