Q10 14 Z Standard Item Stocked Company Wcu S Inventory Year Firm Random Basis Uses 500 Ite Q34268209

(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,

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