Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Avenidas Footwear Factory has an annual requirement of 7,500 square feet a certain kind of leather. The item costs P110 per square feet. The
Avenidas Footwear Factory has an annual requirement of 7,500 square feet a certain kind of leather. The item costs P110 per square feet. The cost of ordering is P500 per order and the carrying cot is P12 per square feet. What is the economic order quantity of the material (round off your answer to the last digit)? 2. The reorder point of the company is 170 units of material A..The company's average daily usage of this material is 20 units and it takes 7 day for the supplier to deliver an order by the company. What is the base stock for this material? 3. If the average daily usage of the material is 25 units and it takes five days for the supplier to deliver an order of the said material, what will the reorder point be if the base stock of this material is 40 units?
Step by Step Solution
★★★★★
3.52 Rating (155 Votes )
There are 3 Steps involved in it
Step: 1
1 Economic Order Quantity EOQ sqrt2 D S H Where D Annual demand 7500 square feet S Or...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started