What is the optimum order quantity

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Reference no: EM131802081

The campus bookstore sells 100 school pins per month. To place an order costs $12, but she gets free shipping (sort of). The manager estimates the holding costs to be $0.15 per year.

a. What is the optimum order quantity?

EOQ _______

b. What is the Annual Holding Costs?

Holding Costs: ____________

c. How many orders per year?

Orders/yr ____________

d. If the bookstore is open 250 days a year and it takes 5 days from the time of order to delivery AND the store does not require any safety stock, what is the Reorder Point?

ROP: __________

e. The store buys the pins for $2. What is the annual cost of inventory for the pins?

Annual Cost of inventory: _________

Reference no: EM131802081

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