Company uses 800 units of a product per year year and order costs of $300 per order. It takes a safety stock of 5 days usage in inventory.

Practical Management Science
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ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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ECUR
UMIC ORDER QUANTITY CALCULATIONS (2 QUESTIONS)
Company uses 800 units of a product per year on a continuous basis. The product
year and order costs of $300 per order. It takes 30 days to receive a shipment after an order is placed and the
a safety stock of 5 days usage in inventory.
has carrying costs of $50
A. Calculate the economic order
quantity
a. 98
B. Determine the reorder
a. 150 days
(3
CASH DISCOUNTS
point.
ONS)
(Assume
(EOQ).
a 360-day year.)
per
unit per
firm requires
Transcribed Image Text:ECUR UMIC ORDER QUANTITY CALCULATIONS (2 QUESTIONS) Company uses 800 units of a product per year on a continuous basis. The product year and order costs of $300 per order. It takes 30 days to receive a shipment after an order is placed and the a safety stock of 5 days usage in inventory. has carrying costs of $50 A. Calculate the economic order quantity a. 98 B. Determine the reorder a. 150 days (3 CASH DISCOUNTS point. ONS) (Assume (EOQ). a 360-day year.) per unit per firm requires
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