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Given the following data for the specific inventory item: Usage 500 units/week Ordering $40 per order Carrying Cost $.01 for each unit per week Lead Time three weeks Price $.50 per unit

a. What is the economic order quantity for this item?

b. For economic order quantity, what is the length of order cycle?

c. For the economic order quantity, what is reorder point?

d. For economic order quantity, what is average inventory level?

e. For economic order quantity, what are average periodical ordering costs?

f. For economic order quantity, what are average weekly carrying costs?

g. For economic order quantity, what are average weekly total costs, comprising the cost of inventory item?

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M913877

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