Using the EOQ model under certainty, calculate the recommended inventory level for Bubbles Equipment.

Question 1 : solve for Q and show the calculations.

V = $120.00 per unit W = 10% A = $210.00 per order R = 3,400 units

Now that you have the recommended quantity for the initial inventory level calculate the point of reordering for Bubbles Equipment.

The replenishment or lead time takes five days. Given that demand is 120 units per day.

Question 2 : What is the reordering point for Bubbles Equipment? show your calculations.