Instructions

Demand for a popular athletic shoe is nearly constant at 1600 pairs per week for a regional division of a national retailer. The cost per pair is $64. It costs $75 to place an order, and annual holding costs are charged at 25% of the cost per unit. The lead time is 3 weeks. One year has 52 weeks.

a. What is the Economic Order Quantity?

b. What is the reorder point?

c. What is the cycle time?

d. What is the total annual cost?