Use the information below to calculate the number of orders per year when using the EOQ:
| | Annual demand for an item is 43,000 units |
| | The cost to place an order is $200 |
| | The per unit cost of the item is $50.00 |
| | The annual holding rate is 35% |
Choose the closest answer.
B)
If your company had an annual purchase cost of items equal to $2,000,000, an annual holding cost of $150,000 and an annual ordering cost of $50,000 this scenario would reveal that:
| | Your order size was lower than the EOQ |
| | Your order lot size was equal to the EOQ |
| | Your order lot size was higher than the EOQ |
| | Nothing because there is insufficient information to discern where the EOQ would be. The College Bookstore sells a unique calculator to college students. The demand for this calculator has a normal distribution with an average daily demand of 20 units and a standard deviation of 4 units per day. The lead time for this calculator is 9 days. Compute the statistical reorder point that results in a 95 percent in-stock probability. Choose the closest answer. |
