Question
Fsc limited is the retailer in selling sports product. it uses an EOQ decision model to make inventory decision. it is now considering inventory decision
Fsc limited is the retailer in selling sports product. it uses an EOQ decision model to make inventory decision. it is now considering inventory decision for its surfing boards product line. this is ahighly popular item. data for 2020 are as follows. expected annual demand 150000 , ordering cost per purchase order is $270 and carrying cost per year is $4 per surfing board. each surfing board cost fsc limited $65 and sells for $ 120 . the $8 carrying cost per surfing board per year consisys of the requirement return i the investment of 6.50 (10% $65 purchase price) pluse $ 3.50 in relevant insurance,handlimg and storage cost. the purchasimg lead fime is 10 days .fsc limited is open 365 days i a year . Calculate the EOQ , calculate the numbers of orders that will be placed each year , calculate the reorder point
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