Question
The Queens Box Company experiences a constant demand of 48,000 boxes per year to operate its business. The unit cost is .30 (cents). Placing an
The Queens Box Company experiences a constant demand of 48,000 boxes per year to operate its business. The unit cost is .30 (cents). Placing an order costs $20 and annual carrying costs are $2/unit. The company operates 250 days per year and maintains a safety stock of 576 boxes. The lead time for an order of boxes is 4 business days. The EOQ (rounded to the nearest whole number) is:
a. | 576 units | C. | 3098 units |
b. | 490 units | d. | 980 units |
Refer to the previous question The reorder point, R, is:
a. | 1,344 units | c. | 576 units |
b. | 768 units | d. | Cannot be determined from this information |
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