Compute the Optimum number of order

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Reference no: EM133117399

Question - Palma Corporation needs to know the frequency of placing its orders. The corporation presents the following pieces of information:

Units needed per month 5,000 units

Cost per order P25/order

Carrying Cost per order P4/unit

Normal lead time 10 days

Maximum lead time 14 days

Number of days in a month 30 days

Required -

1. Compute the EOQ.

2. Compute the Optimum number of order.

3. Compute the Total inventory cost.

4. Compute the Safety stocks.

5. Compute the Re order point.

Reference no: EM133117399

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