Compute the economic order quantity

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Reference no: EM132086146

Question: Widget Co. has the following data available relative to its investment in materials:

Number of units of material used annually 20,000

Number of workdays in a year 250

Cost of placing an order $20

Annual carrying cost per unit of inventory $5

1. Compute the economic order quantity

2. Give some examples of order costs and carrying costs.

3. If the company requires a safety stock of 200 units and has an anticipated lead time of 5 days, what is the order point?

Reference no: EM132086146

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