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The annual demand for a specific product is 65,000 units. The purchasing price is 5 per piece. The ordering costs are considered with 120 per order. The carrying cost is 25% of the unit cost. The lead time is 14 days (a year has 365 days). a) What is the economic order quantity? b) What is the re-order-point (ROP)? c) What are the total annual cost?.

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The annual demand for a specific product is 65,000 units. The purchasing price is 5 per piece. The ordering costs are considered with 120 per order. The carrying cost is 25% of the unit cost. The lead time is 14 days (a year has 365 days). a) What is the economic order quantity? b) What is the re-order-point (ROP)? c) What are the total annual cost?

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  • 1. The annual demand for a specific product is 65,000 units. The purchasing price is 5 per piece. The ordering costs are considered with 120 per order. The carrying cost is 25% of the unit cost. The lead time is 14 days (a year has 365 days). a) What is the economic order quantity? b) What is the re-order-point (ROP)? c) What are the total annual cost?