Run first inc uses 1000 units of product x each year on a, Ask an Expert

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Run First, Inc. uses 1000 units of Product X each year, on a continual basis. Product X has a fixed cost of $100 per order. There is a carrying cost of $1.50 per unit, per year. It takes 10 days for shipments to be received after an order is placed. Run First, Inc. wants to hold a 20 day usage in inventory as safety stock.

Calculate the EOQ

Calculate the reorder point

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91671090

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