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Evans Company has the following information Annual Demand.........4,000 units order size...................1,000 units ordering cost per order.......$500 carrying costs per unit for one year.......$50 lead time
Evans Company has the following information Annual Demand.........4,000 units order size...................1,000 units ordering cost per order.......$500 carrying costs per unit for one year.......$50 lead time (maximum 20 days)................10 days Maximum daily use................................25 units work year...............................................250 day determine the economic order quantity for Evans what is the annual saving to evans company if it was to change from an order size of 1,000 what is the reorder point what is the safety stock needed to prevent stockouts
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