Question

The Queens Box Company experiences a constant demand of 48,000 boxes per year to operate its...

The Queens Box Company experiences a constant demand of 48,000 boxes per year to operate its business. The unit cost is .30 (cents). Placing an order costs $20 and annual carrying costs are $2/unit. The company operates 250 days per year and maintains a safety stock of 576 boxes. The lead time for an order of boxes is 4 business days. The EOQ (rounded to the nearest whole number) is:

a.

576 units

C.

3098 units

b.

490 units

d.

980 units

                  Refer to the previous question The reorder point, R, is:

a.

1,344 units

c.

576 units

b.

   768 units

d.

Cannot be determined from this information
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