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Tratix company has been in industry for 10 years. They sell in the France market only. They have 100 employees. T hey sell 1,500,000 units

Tratix company has been in industry for 10 years. They sell in the France market only.


They have 100 employees. T

hey sell 1,500,000 units on average per year.


This year, they expect the demand to raise 15% due to COVID19 constrains reduction.


It takes 0.5h for a normal employee to process an order and email it out to our suppliers.


Tratix has a factory and warehouse with very tight space to produce current demand, so they need to manage space and shipments and deliveries very careful.


They have a good agreement with the transport company and for a dedicated truck they only pay 3€/Km (whatever the number of units we order).


Holding stock, costs 3€ a year Last week Tratix commercial Director went to negotiate new prices with their only one supplier that is 350Km far from the factory/warehouse, and he could get a new price per unit of 2€/unit. Labor cost is 18€/h flat rate in all the areas and employees in the company.



As per the EOQ ( Economic Order Quantity) model, calculate Quantity to order, expected number of orders they should place during the year, optimal time between orders and the Total Cost

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