Question
A firm estimates demand for a raw material during the next years is 2500 units. Acquisition costs are shs. 400 per order and carrying cost
A firm estimates demand for a raw material during the next years is 2500 units. Acquisition costs are shs. 400 per order and carrying cost is shs. 50 per unit. The Safety stock is set at 25% of the Economic Order Quantity. The daily usage is 10 units and the Lead time is 10 days.
Determine;
The Economic order quantity model (EOQ)
The safety Stocks
The re-order point
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Public Finance In Theory And Practice
Authors: Holley Ulbrich
1st Edition
0324016603, 978-0324016604
