For supply item mt bluesky company has been ordering 150

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Reference no: EM13612718

For supply item MT, Bluesky Company has been ordering 150 units based on the recommendation of the salesperson who calls on the company monthly. The company has hireda 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	300
Days used per year	300
Lead time, in days	20
Ordering costs	$125
Annual unit carrying costs	$25

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

Reference no: EM13612718

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