Total annual costs of holding and ordering inventory


Assignment:

Discount-Mart, a major East Coast retailer, wants to determine the economic order quantity (see Chapter 12 for EOQ formulas) for its halogen lamps. It currently buys all halogen lamps from Specialty Lighting Manufacturers in Atlanta. Annual demand is 2,000 lamps, ordering cost per order is $30, and annual carrying cost per lamp is $12.
a) What is the EOQ?
b) What are the total annual costs of holding and ordering (managing) this inventory?
c) How many orders should Discount-Mart place with Specialty Lighting per year.

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Supply Chain Management: Total annual costs of holding and ordering inventory
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