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Evans Company has the following information Annual Demand.4,000 units order size.1,000 units ordering cost per order.$500 carrying costs per unit for...

Evans Company has the following information

Annual Demand.........4,000 units
order size...................1,000 units
ordering cost per order.......$500
carrying costs per unit for one year.......$50
lead time (maximum 20 days)................10 days
Maximum daily use................................25 units
work year...............................................250 days
1.)determine the economic order quantity for Evans
2.)what is the annual saving to evans company if it was to change from an order size of 1,000
3.)what is the reorder point
4.) what is the safety stock needed to prevent stockouts?
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Accounting - 8209128.doc

Evans Company has the following information
Annual Demand.........4,000 units
order size...................1,000 units
ordering cost per order.......$500
carrying costs per unit for one...

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