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The Leichhardt Pharmacy sells 5000 bottles of vitamin C tablets each year. The clerical and related costs of placing and processing an order amount to
The Leichhardt Pharmacy sells 5000 bottles of vitamin C tablets each year. The clerical and related costs of placing and processing an order amount to $25 and the carrying costs are 16 cents per bottle per annum. a. Calculate the economic order quantify (EOQ) and the time period between placement of orders, and prove that this is the optimum quantity of orders. b. If lead times is about 1 month, what is the reorder point? c. If safety stocks determined = 100 units, what is the reorder point
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