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Bell Canada stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly demands for these connectors is 15,000 units. Bell estimates its annual holding cost for this item to be $25 per unit. The cost to place and process an order from the supplier is $75. The company operates 300 days per year, and the lead time to receive an order from the supplier is two working days.
a) Find the economic order quantity.
b) Find the annual order quantity.
c) Find the annual holding cost.
d) Find the annual ordering cost.
e) What is the reorder point?
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