Course Solutions Uncategorized (Answered) : Question 2 Inventory Management George Attempting Perform Inventory Analysis Popular Produ Q28024444

(Answered) : Question 2 Inventory Management George Attempting Perform Inventory Analysis Popular Produ Q28024444

June 27, 2024June 27, 2024| adminadmin| 0 Comment| 6:55 pm
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Question 2: Inventory Management

(a) George is attempting to perform an inventory analysis on hismost popular products. Annual demand for this product is 5000units; unit cost is K200,000; carrying cost is considered to beapproximately 25% of the unit price. Order costs for his companytypically run nearly K30,000 per order and lead times average 10days.

(i) What is the economic order quantity?

(ii) What is the reorder point?

(iii) What is the total annual stocking cost?

(iv) What is the optimal number of orders per year?

(v) What is the optimal number of days between orders (assume200 working days per year)?

(b) Daily demand for bread is normally

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