Problem:
Annual demand: 2500
Holding cost per bracket per year: $1.50
Order cost per order: $18.75
Lead time: 2 days
Working days per year: 250
Please answer the following questions:
A. What is the Economic Order Quantity (EOQ)?
B. Given the EOQ: What is the annual inventory holding cost?
C. Given the EOQ: What would be the average inventory?
D. Given the EOQ: How many orders would be made each year?
E. Given the EOQ: What would be the annual order cost?
F. Given the EOQ: What is the total annual cost of managing the inventory?
G. What is the time between orders?
H. What is the reorder point?