What is the total ordering and carrying at the eoq point

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The Yellow Company predicts that 3,200 units of material will be used during the year. The expected daily usage is 15 units, there is an expected lead time of 10 days, and there is a safety stock of 200 units. The material is expected to cost P4 per unit. It is estimated that it will cost P25 to place each order. The annual carrying cost is Pl per unit.

Problem 1: Refer to Yellow Corp., what is the order point?

Problem 2: Refer to Yellow Corp., determine the most economical order quantity.

Problem 3: Refer to Yellow Corp., what is the total ordering and carrying at the EOQ point?

Reference no: EM132791226

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