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For the Economic Order Size determined in a previous question 1(48.0 lbs), determine: (Hint: total cost has two terms such as fixed ordering cost and holding cost)
Days of Operation= 365 days
D= Demand Per Year= 2,000 pound
S= Ordering Cost= $9.66 per order
H= Holding Cost per Unit (1.2*10) = $16.80 per year
EOQ= sqrt (2* 2,000* 9.66/ 16.80) = 48.0 pounds
a. The total reorder costs over the period of a year
b. The total storage costs over the period of a year
c. How many orders should be placed in a year?
d. What is the length of a single cycle?
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