The company would like to use a fixed order quantity system, Operation Management

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The company would like to use a fixed order quantity system

Average demand = 250/week

Lead time = 3 weeks

Order cost = $75/order

Unit cost = $21.50

Carrying charge rate = 0.20

Number of weeks per year = 52

The company would like to use a fixed order quantity system. What is the economic order quantity? What should be the reorder point be?

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