Demand for a Popular Athletic Shoe Is Nearly Constant at 800

question 10

Essay

Demand for a popular athletic shoe is nearly constant at 800 pairs per week for a regional division of a national retailer.The cost per pair is $54.It costs $72 to place an order,and annual holding costs are charged at 22% of the cost per unit.The lead time is two weeks.
a.What is the EOQ?
b.What is the reorder point?
c.What is the cycle time?
d.What is the total annual cost?

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Definitions:

Goal Object

An entity or target that a person or system aims to achieve or obtain, central to motivation and action planning.

Learned Behavior

Actions or reactions acquired through experience, as opposed to being innate.

Cues

Stimuli that signal the availability of reinforcement or punishment, affecting the likelihood of a particular behavior being emitted.