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QUESTION
What is the economic order quantity (EOQ) Daily demand of 200 units.
What is the economic order quantity (EOQ)
Daily demand of 200 units.
Holding cost $4 per item per year
Set up cost $60
Replenishment Lead time average is 12 days
Desire to cover safety stock at twice the lead time.
Solve for EOQ and ROP
Consider the EOQ formula EOQ=2DS
H
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E
O
Q
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2
D
S
H
To get you started you should have 2⋅200⋅365⋅60
4
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