Find economic order quantity and annual holding costs

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Reference no: EM132258726

Nationwide Plumbing & Electric Supplies stocks a special power adapter for commercial air conditioners at its central warehouse for distribution to HVAC service companies throughout the United States.

The yearly demand for these adapters is 29,125 units. Paul Bannon, Chief Financial Officer, estimates the company’s annual holding cost for this item to be $50 per unit. The cost to place and process an order from the supplier is $150. The company operates 300 days per year, and the lead time to receive an order from the supplier is 2 working days.

a) Find the economic order quantity.

b) Find the annual holding costs.

c) Find the annual ordering costs.

d) What is the reorder point?

Please show work.

Reference no: EM132258726

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