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The following information has been gathered for a company wanting to adopt the EOQ method: Annual demand in units 260.000 units Working days per year
The following information has been gathered for a company wanting to adopt the EOQ method:
Annual demand in units 260.000 units
Working days per year 260 days
Lead time in days 12
Ordering cost per purchase order 160
Annual unit carrying cost 30
Required: (5pts each)
a) Find the EOQ
b) Number of orders to be made per year
c) Average daily demand
d) Total relevant ordering cost
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Operations management processes and supply chain
Authors: Lee J Krajewski, Larry P Ritzman, Manoj K Malhotra
9th edition
9788131728840, 136065767, 8131728846, 978-0136065760
