6717661 - EOQ reorder point and safety stock Alexis Company...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
The product has a fixed cost of $50 per order, and its carrying cost is $2 per unit per year. It takes 5 da and the firm wishes to hold 10 days’ usage in inventory as a safety stock. 40000 200 daily usage.) Daily Usage 2.19 Average Inve 22 Reorder point is 11 units safety stock: (1) order cost, (2) carrying cost, (3) total inventory cost, (4) reorder point, (5) economic order quantity. Explain. Total inventory Cost and Reorder point will change if the firm does not carry inventory P14-6
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: EOQ, reorder point, and safety stock Alexis Company uses 800 units of a product per year on a continuous a. Calculate the EOQ. b. Determine the average level of inventory. (Note: Use a 365-day year to calculate c. Determine the reorder point . d. Indicate which of the following variables change if the firm does not hold the ays to receive a shipment after an order is placed, s basis. and the firm wishes to hold 10 days’ usage in inventory as a safety stock....
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern