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A salon shampoo supplier presents the following data in respect of their purchases: table [ [ Annual demand, 2 0 0 0 0 0
A salon shampoo supplier presents the following data in respect of their purchases:
tableAnnual demand, unitsMaximum daily requirement, unitsAverage daily requirement, unitsCarrying costR per unitOrdering costR per orderLead time, daysTime needed to acquire emergency supplies, days
NB: Assume that sales are even throughout the year.
Determine the economic order quantity EOQ
Determine the ordering point.
Calculate the danger level.
Discuss the assumptions made by the EOQ model.
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