Write the key parameters needed for calculating the eoq

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In a cake factory, daily demand is 12.50 units and daily production is 50 units, Co = $125 and Cc = $5 per unit per year. What is the maximum inventory level? (Assume that the facility is open 360 days per year.)

Do the following:

1. Write the key parameters needed for calculating the EOQ.

2. Write the formulas for and determine the following:

a) How many days are required for delivery of the EOQ .

b) The Total Annual Carrying Cost.

Reference no: EM132720596

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