For supply item MT, Bluesky Company has been ordering
For supply item MT, Bluesky Company has been ordering 150 units based on the recommendation of the salesperson who calls on the company monthly. The company has hired a new purchasing agent, who wants to start using the economic-order-quantity method and its supporting decision elements. She has gathered the following information:Annual demand in units300Days used per year300Lead time, in days20Ordering costs$125Annual unit carrying costs$25Determine the EOQ, average inventory, orders per year, average daily demand, reorder point, annual ordering costs, and annual carrying costs.
For any questions, feedback, or comments, we have an ethical customer support team that is always waiting on the line for your inquiries.