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Lockhart Inc. sells whole house water purification systems for individuals with wells or unreliable public water supplies. The annual demand for their best-selling system is
Lockhart Inc. sells whole house water purification systems for individuals with wells or unreliable public water supplies. The annual demand for their best-selling system is 15,000 systems. Each unit costs $1,200, and the lead time is 6 days to get it from their supplier. The ordering costs are $50 per order, and the annual holding costs per box are 15% of the purchase price. The company operates 250 days per year. Answer the following questions about its inventory management. Select the best answer from the choices provided. Note: the answers are shuffled randomly and some values may be very close. What is the Economic Order Quantity? (Round to the nearest integer.) [ Select ] boxes What is the reorder point? [ Select ] v boxes What is the number of orders per year? (Round to 2 decimal places) [ Select ] orders/year What is the total annual cost (in $'s) for this inventory policy? (Round to 2 decimal places.) $ [ Select ]
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