HomeGadgets Inc., a retailer specializing in home appliances, is assessing its inventory management strategies for a popular product, the MultiCooker.

Given Data:

Annual Demand: $2000$ MultiCookers

Ordering Cost: $$60$ per order

Holding Cost per unit per year: $$2$

Lead Time: $5$ days

Number of working days in a year: $350$

Order Quantity: $1000$ units

Calculate the Average Inventory Level.

Determine the Number of Orders to be Placed Annually.

Find the Reorder Point considering the Lead Time.

Calculate the Number of Days Between Two Consecutive Orders.

Determine the Annual Ordering Cost.

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Determine the Annual Holding Cost.

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How does the ordering quantity $1000$ compare to the Economic Order Quantity $(EOQ)?$

How does the ordering quantity $1000$ compare to the Economic Order Quantity $($EOQ$)?$

Above EOQ

Below EOQ

Equal to EOQ

Calculate the EOQ $($Economic Order Quantity$).$

Determine the Annual Inventory Cost using EOQ.