Company A wants to make an order plan for next year. The predicted sales in next year are shown in the table (in thousan

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Company A Wants To Make An Order Plan For Next Year The Predicted Sales In Next Year Are Shown In The Table In Thousan 1 (48.9 KiB) Viewed 68 times

Company A wants to make an order plan for next year. The predicted sales in next year are shown in the table (in thousands of barrels). Month 1 2 3 4 st 5 6 7 8 9 10 11 12 Forecast Sales 16.4 15.55 17.02 17.59 18.85 19.18 19.39 19.25 16.28 16.55 14.21 13.36 Production cost is $20,000 per thousand of barrels and inventory holding cost per month is 10% of the production cost. Ordering costs (S) is $10,000 per order. Use the EOQ formula to calculate the order quantity, order cycle (in days), annual holding cost, annual ordering cost, and annual inventory cost the company. (25pts) (Hint: in EOQ formula, D is the annual demand, H is the holding cost per year)