Identify the aspects of the inventory policy

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Reference no: EM131028051

Suppose that the O&G Company has a petrochemical product that shows a constant annual demand rate of 3600 boxes. A box of the product costs O&G $3. Ordering costs are $20 per order and holding costs are 25% of the value of the inventory. O&G has 250 working days per year, and the lead time is 5 days. Identify the following aspects of the inventory policy:

a. Economic order quantity

b. Reorder point

c. Cycle time

d. Total annual cost

Reference no: EM131028051

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