Question

QUESTION 1 If the demand during review cycle is equal to 12, the demand during lead time is 11, and the safety stock is equal to 8 what is the order point? QUESTION 2 What is the EOQ of an item with a project annual demand of 500, and ordering cost of S5, a holding cost percentage of 35%, and an item cost of $10 (Round to the nearest whole unit) For example, 8 52 - 9. Click Save and Submit to save and submit. Click Save All Anses to save all ansuners. Save

Answer 1

2) If the demand during review Cycle is equal to 19) The demand deering lead time is 11, and the safety stocks is equal to s Order point = lead time demand & Safety stocks Tooder point = 19 chits) The order point is the level of parentory which triggers an action to replenish that particular inventory stocks. ... It is a minimum amount of an åtem which a form holds in stocks when stock falls to this amount the cor item must be reordered.

Given date, -Annual demand 500 ordering cost $5 Holding cost percentage 35% Item cost $10 Carrying cost per unit- unit cost & Halding costs $10* 35544 =$3-5 EOG = V23 Anual demand x cost per order Carrying cost per unit 2 x 500x5 35 11428-51 37.79 Eag of an Prems = 36 Onits