Problem:
Alex's Sporting Goods is the only official supplier of balls for games and practices at all levels of play in the Northwest region. It expects to sell 110,000 soccer balls this year. Carrying costs are $2.00 per soccer ball per year and ordering costs are $73.00 per order. His order to delivery time is 10 days.
Required:
Question 1: What is the firm's EOQ for this product?
Question 2: If Alex never want his inventory to get below 500 balls, what is his reorder point?
Note: Please show how you came up with the solution.