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How do calculate the economic order quantity

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Reference no: EM132715727

Wilson Company is trying to figure out the most efficient inventory management. The following information is available:

Annual sales units required 10,000
Cost per order/setup $400
Cost per unit $100
Carrying cost percentage 8%
Lead time 2 weeks
Work days 50 weeks
Safety stock 50 units

Required:

Problem 1: Calculate the economic order quantity.

Problem 2: Calculate the reorder point

Reference no: EM132715727

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