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EOQ, reorder point, and safety stock. Alexis Corupany uses 840 units of a product per year on a continuous basis. The product has a fiked
EOQ, reorder point, and safety stock. Alexis Corupany uses 840 units of a product per year on a continuous basis. The product has a fiked cost of $54 per order, and its camying cost is $4 per unit per year. It takes 5 diys to recelve a shipment after an order is placed, and the firm wishes to hold 10 days usage in inventory as a sofety stock. a. Calculate the EOQ b. Determine the average level of inventory. (Note: Use a 365-day yoar to calculate daily usage) c. Determine the roorder point d. Indicate which of the following variablos change is the firm does not hold the safoty stock (1) order cost, (2) carrying coat, (3) total inventory cost. (4) reorder point, (5) economic order quantity. a. Aloxis' EOQ is units. (Round to the nearest whole number.) b. Alexit average level of liwentory is units (Round to the nearent whole number) c. Alexis reorder point is units: (Round to the nearest whole number) Which of the following will change if the firm does not hold the satoly stock? (Select the best answer below) A. Total Inventory Cost, Reorder Point, and Economic Order Ouantity B. Order Cost. Carrying Cost, and Jotal Inventory Cost C. Reorder Poirt, Economic Order Quantity and Order Cost D. Carrying Cost, Total Inventory Cost, and Reorder Point
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