problem: For supply item XYZ, 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 employed by the company who wants to start using the economicorderquantity method & it's supporting decision elements. She has gathered the following data:
Annual demand in units

250

Days used per year

250

Lead time, in days

10

Ordering costs

$100

Annual unit carrying costs

$20

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