Question

16) For supply item ABC, Andrews Company has been ordering 125 units based on the recommendation of the salesperson who calls on the company monthly. A new purchasing agent has been hired by the company who wants to start using the economic-order-quantity method and its supporting decision elements. She has gathered the following information:

Annual demand in units	250
Days used per year	250
Lead time, in days	10
Ordering costs	$100
Annual unit carrying costs	$20

Required:

Determine the EOQ, average inventory, orders per year, average daily demand, reorder point, annual ordering costs, and annual carrying costs.

EOQ:                                        

Average inventory:                   

Orders per year:                       

Average daily demand:            

Reorder point:

Annual ordering costs:              

Annual carrying costs:               

Answer 1

answered by: anonymous