Find the economic order quantity total cost and the reorder


Find the economic order quantity, total cost and the reorder point, given

Annual demand ( D ) = 1,000 units

Average daily demand ( d ) = 1,000/365

Ordering cost ( Cp ) = $5 per order

Holding cost ( Ch ) = $1.25 per unit per year

Lead time ( L ) = 5 days

Cost per unit ( C ) = $12.50

What quantity should be ordered?

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: Find the economic order quantity total cost and the reorder
Reference No:- TGS0947902

Expected delivery within 24 Hours