How many placements of order per year

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The sales of Vintage company is 80,000 units per year. The percentage of storage is 20 percent of inventory value. The purchase price is RM20 per unit and the ordering cost of each order is RM1,000. Lead time is 2 weeks.

Assume that there are 52 weeks in your calculation.

Calculate:

Question (a) EOQ

Question (b) Total Carrying Cost

Question (c) Total Ordering Cost

Question (d) Total Inventory Cost

Question  (e) Reorder point

Question (f) How many placements of order per year?

Reference no: EM132645684

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