A. Calculate the Economic Order Quantity (EOQ) for the following scenario:
Procurement Process Cost: $500
Daily Demand: (units) Calculate from data table provided
Total Inventory Holding Cost: $25/year
B.1. If you wait until you reach zero (or below) as your reorder point, how many times do you stock-out during the year? (Assume you instantaneously restock)
B.2. What are your annual holding costs?
C. Given the lead times below, along with 95% reliability of stock on-hand, calculate your Safety Stock (SS) and Reorder Point (R).
Procurement Leadtime (PLT) – 1 day
Manufacturer Leadtime (MLT) – 7 days
Shipping/Transportation Leadtime (SLT) – 5 days