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Determine the eoq average inventory orders per year average

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Reference no: EM13569536

For supply item LK, Boatman Company has been ordering 125 units based on the recommendation of the salesperson who calls on the company monthly. The company has hired a new purchasing agent, who wants to start using the economic-order-quantity method and its supporting decision elements. She has gathered the following information:

Annual demand in units

250

Days used per year

250

Lead time, in days

13

Ordering costs

$100

Annual unit carrying costs

$20

Determine the EOQ, average inventory, orders per year, average daily demand, reorder point, annual ordering costs, and annual carrying costs.

Reference no: EM13569536

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