About the economic order quantity

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Reference no: EM132112496

The organization you work uses 1570 widgets per year. If the widgets cost $25 each, the annual holding cost is $2 per kit and the ordering cost is $45 per order, answer the following questions?

A) What is the economic order quantity?

B) If the person you order from will rebate you $20.00 per order if your order a quantity of 250, should you take this savings on the order costs? ( Show the numbers )

C) Assuming that this company is open 224 days per year, what is your reorder point if lead time is 4 days, daily demand has a std deviation of 6 units and you want a 95% (z= 1.64) confidence level in your reorder point?

Reference no: EM132112496

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