Operates a store featuring school merchandise it uses an

Reference no: EM13482483

Operates a store featuring school merchandise. It uses an EOQ decision model to make inventory decisions. It is currently considering inventory decisions for a special jacket line. Data for 2013 are: Expected annual demand for jackets: 20,000 Ordering cost per purchase order: $400 Carrying cost per year: $10 per jersey Each jersey costs KU Inc. $60 and sells for $110. The purchasing lead time is 10 days and the Store is open 300 days a year. Required: Calculate EOQ Calculate the number of orders that will be placed each year Calculate the reorder point.

Reference no: EM13482483

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