A communication company is manufacturing mobile phones. Their annual demand is 5,000 mobile sets. They want to determine EOQ for a motherboard which has an annual holding cost (H) of $5/unit, and an ordering cost (S) of $60. They also want to calculate total cost (TC) and the reorder point (R) if the purchasing lead time is 4 days, assuming there are 300 working days per year. Find out: a. Economic Order quantity (EOQ) b. Total cost (TC) c. Reorder point (R)

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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A communication company is manufacturing mobile phones. Their annual demand is 5,000 mobile sets. They want to determine EOQ for a motherboard which has an annual holding cost (H) of $5/unit, and an ordering cost (S) of $60. They also want to calculate total cost (TC) and the reorder point (R) if the purchasing lead time is 4 days, assuming there are 300 working days per year. Find out:
a. Economic Order quantity (EOQ)
b. Total cost (TC)
c. Reorder point (R)
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