Annual cost of ordering and holding generator cases

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Reference no: EM13758191

Westside auto builds automobile generator .they contract with case casting to supply case for the generators and build the rest of the product in-house. West side’s operation runs at a constant rate and requires 1000 cases per month throughout the year, assume the ordering costs are $25 per order and annual holding costs are fifty cents per generator case. Westside has 250 working days per year and a lead time of 5 days

what is the EOQ for generator cases?

what is the reorder point?

what is the cycle time?

what is the total annual cost of ordering and holding generator cases?

Reference no: EM13758191

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