Question
Halifax Souvenir Company currently orders 500 units four times each year. Each order costs $12 and each unit costs $1.20 per year to carry. On
Halifax Souvenir Company currently orders 500 units four times each year. Each order costs $12 and each unit costs $1.20 per year to carry. On average, it takes 5 days to receive an order from the supplier. The company operates 250 days per year.
Required:
- What is the EOQ?
- Calculate total annual inventory cost under EOQ.
- What is the current inventory cost?
- What is the re-order point?
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Lease Audits The Essential Guide
Authors: Theodore H Hellmuth
1st Edition
0934055041, 978-0934055048
