Assignment Problem: A supervisor of inventory control in a supermarket is generating a total inventory cost report for frozen strawberries. He/she has the following information: The price of strawberry is $35/bag, the carrying cost percentage is 250%, the annual use is 2000 bags and the cost of placing an order is $560. It usually takes 16 days to get an order.
(1) Find the Economic Order Quantity (EOQ)
(2) What is the total inventory costs (Alinimized Total Costs) and the best reorder point (ROP)?
(3) Please describe how to use the Total Cost (TC) model, Carry Cost (CC) model and Ordering Cost (OC) model to find the EOQ (Economic Ordering Quantity) point on a graph?