How many times should the company order each year

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Reference no: EM131715620

Currently order 5000 units at a time. The demand for the product is 100000/year. Costs 25% of the acquisition cost to keep 1 unit for a year. The order cost is 2 and the acquisition cost is 1. 365 days in a year.

A) If ordering 5000 unit each time, how many times should the company order each year?

B) If ordering 5000 unit each time, how many days of supply of product do they have on average?

C) If ordering 5000 unit each time, how much money do they spend to hold the product?

D) If ordering 5000 unit each time, what is the inventory turn?

E) What is the EOQ?

F) What is the total holding and ordering cost if they order the EOQ each time?

Reference no: EM131715620

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