Question

About 200 units are required per quarter. 100 per order is incurred for placing an order. The inventory carrying cost per unit is 4. The re-order level is 350 units. The minimum usage is 25 units per week and the re-order periods is 4 to 6 weeks.

Compute : (a) Economic order quantity; and (b) Maximum level.​

Answer 1

Explanation:

About 200 units are required per quarter. 100 per order is incurred for placing an order. The inventory carrying cost per unit is 4. The re-order level is 350 units. The minimum usage is 25 units per week and the re-order periods is 4 to 6 weeks.

Compute : (a) Economic order quantity; and (b) Maximum level.​

Answer 2

Answer:

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