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For the following problem, consider the EOQ (Economic Order Quantity) formula EOQ 2CoN 0 opt With Co-order cost, C.-carrying cost, Q-quantity, N-annual demand WOPPAA (Wolf
For the following problem, consider the EOQ (Economic Order Quantity) formula EOQ 2CoN 0 opt With Co-order cost, C.-carrying cost, Q-quantity, N-annual demand WOPPAA (Wolf Pack Printing And Apparel) uses 10,000 polo shirts of a specific quality annually in a printing operation. Ordering these specialty shirts requires a lead time of 10 days, and their daily usage is 75 shirts. The safety stock for this shirt is 150 units. In terms of cost, each time WOPPAA orders shirts there are order costs of $75.00 within the company, and their supplier also charges a fixed order fee of $25.00, so that the total ordering cost (Co) is $100.00. Keeping shirts in inventory is not free either, and the carrying cost including storage, insurance, and interest) is estimated to be $0.10 per unit per year (Cc). Calculate the order point, i.e., the inventory level at which WOPPAA needs to place an order. What formula should I use? Select one: a. Safety stock (150) +Lead Time (10) Daily Usage (75) b. When stock is equal to safety stock (150) c. 75+100+Q e. On the first day of each month O f. Safety Stock(150) +N (10,000)/Daily Usage (75)
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