Question
PLEASE HELP!! I WILL LIKE ANSWER!! ELLA T., Inc. has annual sales of 5,400 units; management decides to establish the EOQ model. The firm has
Supplier A
Supplier B
Shipping costs $1,010
Per-unit carrying costs $72
Shipping costs $820
Per-unit carrying costs $83
a. What is the EOQ for each supplier? Round your answers to the nearest whole number.
Supplier A:
units
Supplier B:
units
b. If the firm establishes a safety stock of 162 units, what is the firm's average inventory for both suppliers? Use the rounded value from the previous question. Round your answers to the nearest whole number.
Supplier A:
units
Supplier B:
units
c. What will be the firm's expected maximum and minimum inventory with each supplier? Use the rounded value from the previous questions. Round your answers to the nearest whole number.
Units
Minimum
Maximum
Supplier A:
Supplier B:
d. If delivery takes nine days, what should be the firm's level of inventory when it places an order with supplier A? Assume 365 days in a year. Round your answer to the nearest whole number.
units
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