Question
Please help and show work of how to properly solve this provlem. At Agricultural Dot Com, a large retailer of agricultural books, demand is constant
Please help and show work of how to properly solve this provlem.
At Agricultural Dot Com, a large retailer of agricultural books, demand is constant at 32,000 books per year. The cost of replacing order to replenish stock is $ 10, and the annual cost of holding is $4 per book. Stock is received 5 working days after an order is made. Ag. Dot Com would like to keep a safety stock of 2000 books. Assume 300 working days a year.
a) What is Ag. Dot Com's economic ordering quantity? b) How many orders are made in a year? c) What is the: demand during the lead-time? d) What is the reorder point?
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