Answered step by step
Verified Expert Solution
Question
1 Approved Answer
EOQ, reorder point, and safety stock Nexis Company uses 647 units of a product per year on a continuous basis. The product has a fixed
EOQ, reorder point, and safety stock Nexis Company uses 647 units of a product per year on a continuous basis. The product has a fixed cost of 549 per order, and its carrying cost is $3 per unit per year It takes 5 days to receive in shipment ater an order is placed, and the firm wishes to hold to days' usage in inventory as a safety stock. a. Calculate the EOQ. b. Determine the average level of inventary. (Wote: Use a 365-day year to calculate daly usage ) c. Determine the rovider point. d. Indicate which of the following variabies change 4 the firm does not hold the safety stock. (1) onder cost, (2) carrying cost, (3) total inventory cost, (4) reorder point, (5) econamic order quantily a. Alexis' EOQ is units. (Round to the nearest whole number.) b. Alexis' average level of inventory is units. (Round to the nearest whole number) c. Alexis' receder point is units. (Round to the nearest whole number) Which of the following wall change if the firm does not hold the safely slock? (Select the best answer below) A. Order Cost, Carrying Cost, and Total Imventory Cost B. Total hventory Cost, Reorder Point, and Economic Order Quantily c. Reorder Point, Economic Order Quantity, and Order Cost D. Carrying Cost, Total Inventory Cost, and Reorder Paint
Step by Step Solution
There are 3 Steps involved in it
Step: 1
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