Demand for a popular athletic shoe is nearly constant at 900 pairs per week for a regional division of a national retailer. The cost per pair is $54. It costs $72 to place an order, and annual holding costs are charged at 22% of the cost per unit. The lead time is two weeks.
- What is the EOQ?
- What is the reorder point?
- What is the cycle time?
- What is the total annual cost?