Brenda Opens Pool Spa Store Lively Shopping Mall Finds Business Booming Often Stocks Key I Q34298142

Brenda opens a pooland spa store in a lively shopping mall and finds business to bebooming, but she often stocks out of key items customers want.  She has the following information available:

Demand = 10 boxes perweek                                          Store operates 50 weeks/year

Order cost =$40/order                                                        Lead time = 3 weeks

Item cost =$80/box                                                 

Inventory-holding cost= 15% per year

Required

• Calculate the EOQ
• Calculate the Re-OrderPoint       

Expert Answer

This question is all about Economic order Quantity. Pl rate ifabove explanation helped you.

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