(Q10-14) Z is a standard item stocked in acompany WCU’s inventory. Each year the firm, on a random basis,uses about 500 of item Z, which costs $25 each. The source ofsupply is reliable and maintains a constant lead time of five days.Holding costs, which include insurance and cost of capital, amountto $6.25 per unit of average inventory. Every time an order isplaced for more item Z, it costs $3. Assume that a year consits of365 days. Answer the following questions
Question 10 (3 points)
Saved
What is the economic order quantity? (Round to thenearest whole number)
Question 10 options:
a)
46
b)
3
c)
22
d)
63
Question 11 (3 points)
Saved
What reorder point,
OR
PayPal Gateway not configured
OR
PayPal Gateway not configured