What will be the economic order quantity

Reference no: EM131357332 , Length: word count:250

Complete this essay in a Microsoft Word document, answer each of the essay questions 250 words; APA formatted and 5% similarity.Make sure you use adequate, credible and reliable APA source 2 citations to support your work.

A. If Mercedes Benz realizes that its annual demand for 500SEL model is 50,000 and their cost of order preparations is $42,000.00 and the inventory carrying cost per car per year is $3,600.00. What will be the Economic Order Quantity?

b. During replenishment of blue diamonds, it is shown that the average demand per period is 4 and the average lead time is 3 per period. What is the standard deviation of demand during replenishment of blue diamond if the standard deviations of demand per period and lead time are 1.2 and 1.5 respectively?

Reference no: EM131357332

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