Economic Order Quantity (EOQ)
A product sells at the rate of 5 per day and the company operates seven days per week. The order quantity is 100. It takes 7 days for an order to be delivered. Carrying cost is $2.00 per unit per year.
What is the maximum inventory assuming zero safety stock?
What is the minimum assuming zero safety stock?
What is the average inventory assuming zero safety stock?
What is the reorder point assuming zero safety stock?
Currently, on-hand inventory is 20 and in-transit is 100. What amount should be ordered?
Currently, on-hand inventory is 20 and in-transit is 0. What amount should be ordered?
What is the cost of carrying the inventory per year (zero safety stock)?
What is the EOQ if order cost is $200?