Solved: Abc hardware store is open for business 350 days a year, Business Management

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Abc hardware store is open for business 350 days a year

ABC Hardware store is open for business 350 days a year. Annual demand for a power cutter at this store is 700 units. Replenishment cost is $15 per order and annual inventory holding cost is 10% of the inventory value. ABC pays $20 for each power cutter . What is the economic order quantity for this cutter, and what is the reorder point if the lead time is 5 days and ABC policy is to keep a safety stock of 10 units?

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Business Management: Abc hardware store is open for business 350 days a year

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Business Management: Abc hardware store is open for business 350 days a year

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