What is optimal order quantity

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1. Let us suppose weekly demand is 200 units. The cost per unit is $2.50, and you sell the product for $4.00. Assuming that lead time is 18 days, holding cost of 20%, and ordering cost of $22. What is the optimal reorder point, r?

2. Let us suppose weekly demand is 200 units. The cost per unit is $2.50, and you sell the product for $4.00. Assuming that lead time is 18 days, holding cost of 20%, and ordering cost of $22. What is the optimal order quantity?

3. Assume the following:

Fixed Ordering Cost: $40

Unit product cost to obtain: $3.00

Sell Price: $8.00

Annual holding cost: 25%

Daily demand: 30 units

Daily demand variance: 4 units

Leadtime: 7 days

Service level: 95%

What is the optimal order quantity?

Reference no: EM132241199

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