Question
The table belowprovides the information for a popular dining set at a Big Lotsstore in Daytona Beach: Annual Demand 10 sets Holding cost $26.00/set.year Ordering
The table belowprovides the information for a popular dining set at a Big Lotsstore in Daytona Beach:
| Annual Demand | 10 sets |
| Holding cost | $26.00/set.year |
| Ordering cost | $80 |
| standard deviation ofdaily demand | 3 sets |
| Lead-time | 20 days |
(a) What is the EOQ?(Assume 365 days in a year)
(b) How much is thetotal annual cost associated with the EOQ?
(c) What should be thereorder point to have a 90% service level?
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Operations Management in the Supply Chain Decisions and Cases
Authors: Roger Schroeder, M. Johnny Rungtusanatham, Susan Goldstein
6th edition
73525243, 978-0073525242
