What would be the annual inventory holding cost

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Reference no: EM131481506

Flawless Faucets? (FF) sells a popular brand of kitchen? faucets, FFX700. The demand for the faucets is constant at 1,300 per year. The supplier charges a fixed order cost of $716 per order regardless of the number of faucets ordered. Annual holding cost is $42 per faucet. The lead time from the supplier is 18 days. Assume FF operates 250 days per year. Round all answers to two decimal places.

a. what is the EOQ?

b. what is the average inventory if the EOQ is used?

What would be the annual inventory holding cost?

C. Given the EOQ how many orders will be made annually?

What would be the annual order cost?

D. Given the EOQ, what is the total annual cost of managing (ordering and holding) the inventory?

E. What is the time between orders?

F. What is the reorder point?

Reference no: EM131481506

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