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Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Thomas ' s fastest -
Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation.
Thomas
s fastest
moving inventory item has a demand of
units per year. The cost of each unit is
$
and the inventory carrying cost is
$
per unit per year. The average ordering cost is
$
per order. It takes about
days for an order to
arrive
and the demand for
week is
units
This is a corporate
operation
and there are
working days per
year
eoq
What is the average inventory if the EOQ is
used what s the optimal number of orders per year
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