Eoq-average level of inventory, Finance Basics

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Eoq-average level of inventory

Joe's Bar uses 800 kegs of adult beverages per year on a continuous basis (assume 365 days of operations per year). The order cost is $50.00 per order and the carrying cost is $2.00 per unit. It takes 5 days to receive a shipment after an order has been placed (old Joe took this TQM course so he now believes in JIT inventory methods - in other words- assume no safety stock).

a. Calculate the EOQ

b. Determine the average level of inventory

c. Determine the reorder point

d. Compute the Total Cost of Inventory

Please show work for each of the questions.

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Finance Basics: Eoq-average level of inventory

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Finance Basics: Eoq-average level of inventory

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Recent Questions Asked Finance Basics

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Finance Basics: Eoq-average level of inventory

Reference No:- TGS042242

Recent Questions Asked Finance Basics

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