What is the maximum inventory level reliant

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Reliant Auto estimates the annual demand for its newest model is 60,000 units, the cost of order preparations is $55,000, the inventory carrying cost per car per year is $5,000 and the order lead-time is 1 month. Reliant keeps 500 units of safety stock.

-What is the Economic Order Quantity?

-Approximately what is the order frequency?

-What is the demand during lead-time?

-What is the Maximum Inventory Level Reliant should have, assuming orders arrive on time and inventory is depleted as predicted?

-What is the Minimum Inventory Level should have, assuming orders arrive on time and inventory is depleted as predicted?

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Reference no: EM131770216

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