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A firm uses 3,500 units during the course of a year. The following information is known about the firm. The carrying cost per unit
A firm uses 3,500 units during the course of a year. The following information is known about the firm. The carrying cost per unit per year was $2.5, while the setup cost per order was $22, and its takes 3 days from ordering the order until received. The firm is working 250 days per year. A. Given the above information, what would be the economic order quantity? B. How many orders would be made each year? C. What is the total annual inventory cost? D. What is the time between orders? E. What is the reorder point?
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