Question: Footlocker experiences demand for a popular athletic shoe that is nearly constant at 800 pairs per week. The cost per pair is $54. It costs $72 to place an order, and annual holding costs are charged at 22% of the cost per unit. The lead time is two weeks.
What is Footlocker's economic order quantity for this athletic shoe?
What is Footlocker's reorder point?
What is Footlocker's cycle time?
What is the total annual cost?
Develop your EOQ Inventory Model for Footlocker's athletic shoe in Excel.