The campus bookstore sells 100 school pins per month. To place an order costs $12, but she gets free shipping (sort of). The manager estimates the holding costs to be $0.15 per year.
a. What is the optimum order quantity?
EOQ _______
b. What is the Annual Holding Costs?
Holding Costs: ____________
c. How many orders per year?
Orders/yr ____________
d. If the bookstore is open 250 days a year and it takes 5 days from the time of order to delivery AND the store does not require any safety stock, what is the Reorder Point?
ROP: __________
e. The store buys the pins for $2. What is the annual cost of inventory for the pins?
Annual Cost of inventory: _________