3(AL Jn 2020, Square-Nine Entrerprise has purchased 250,000 micro-chips for the first four monthsand 35% more on the remainder as a component in the production of its products. As much as 25%of the purchase is not used but instead stored in the warehouse. Each unit of the final product is soldin the market at a price of $18.99 per unit, and the storage cost is a total of $1.13 per unit. The costprice of the order is $5,500 for each delivery that takes three weeks. Calculate:1) An annual optimal order quantity.2) A total of number of orders placed in a year.3) Time range between orders if the company operates for 49 weeks in a year4) What are total units for reorder point?5) Cost of Goods Sold.

EOQ stands for economic order quantity. It is a company's optimal order quantity that undervalues…

Answered: 1) An annual optimal order quantity. 2)…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

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Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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1) An annual optimal order quantity. 2) A total of number of orders placed in a year. 3) Time range between orders if the company operates for 49 weeks in a year.