Question: Medro wishes to use the EOQ method on the take-away boxes in his coffee shop He to use the is open 300 days a year He uses 50 boxes per day The supplier guarantees a 1 day delivery period It costs 300 to place each order of boxes It costs 400 hold one box in inventory for one year
1. What is the EOQ equal to?
2. What is the annual holding cost equal to?
3. What will the reorder point equal to?
4. How many orders will Medro place each year?
5. What will the time between orders equal to?
6. What will the maximum inventory of boxes equal?