How tar apart would orders be placed on average

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Reference no: EM132267755

An appliance store carries a certain brand of TV which has the following characteristics:

Average annual sales = 100 units

Ordering cost = 25 per order

Carrying cost = 25 per cent per year

Item cost = $ 400 per unit

Lead time = 4 days

Standard deviation of the daily demand = 0.l unit working days per year = 250

a) Determine the EOQ

b) Calculate the reorder point for a 95% service levels assessing normal demand.

c) How tar apart would orders be placed on average?

Reference no: EM132267755

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