Assume you have a product with the following parameters: Demand= 360, Holding cost per year=$1.00 per unit, Ordering Cost= $100 per order
What is the EOQ?
Given the data from Problem 5, and assuming a 300-day work year; how many orders should be processed per year? What is the expected time between orders?
What is the total cost for the inventory policy used in Problem 5?
Assume that the demand was actually higher than estimated (i.e., 500 units instead of 360 units). What will be the actual annual total cost?