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Inventory Management - POQ Example D - = 2 , 0 0 0 units p = 1 2 units per day S - = $

Inventory Management

-

POQ Example

D - = 2, 000

units

p = 12

units per day

S - =

5 d = 6

units per day

H - =

1.00

per unit per year

Determine the optimal number of items to produce.

Determine the expected number of orders.

What is the optimal time between orders?

What is the total annual cost?

What is the biggest difference between EOQ and POQ?

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