inventory

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December 3, 2014 at 3:43 pm #216891
sonia
Member
- Topics: 13
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demand 7500 per month
each unit cost 5 per order cost is 100 holding cost .5
lead time 30 days between placing and receivng order
if they order EOQ hoe frequently will place order (near to days) how many units in each order ?
December 3, 2014 at 4:13 pm #216917
John Moffat
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- Topics: 57
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D = 12 x 7500 = 90,000; Co = 100; Ch = 0.5.
So the EOQ = 6,000.

So it means ordering 90,000/6,000 = 15 times a year.

Which means ordering every 365/15 = 24.3 days.
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