A firm estimates demand for a raw material during the next years is 2500 units. Acquisition costs are shs. 400 per orde

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answerhappygod
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A firm estimates demand for a raw material during the next years is 2500 units. Acquisition costs are shs. 400 per orde

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A firm estimates demand for a raw material during the
next years is 2500 units. Acquisition costs are shs. 400 per
order and carrying cost is shs. 50 per unit. The Safety stock is
set at 25% of the Economic Order Quantity. The daily usage is 10
units and the Lead time is 10 days.
Determine;
•The Economic order quantity model (EOQ)
•The safety Stocks
•The re-order point
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