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For the following problem, consider the EOQ (Economic Order Quantity)formula: EOQ (Economic Order Quantity) formula WOPPAA (Wolf Pack Printing And Apparel) uses 10,000 polo shirts
For the following problem, consider the EOQ (Economic Order Quantity)formula: EOQ (Economic Order Quantity) formula 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. Calculate the Economic Order Quantity for WOPPAA: Select one: a. 4472 units b. 4473 units C. 3873 units d. 4623 units e. 1000 units f. $ 4472.14
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