Examlex

Solved

Taizhou Products Uses 800 Units of a Product Per Year

question 285

Essay

Taizhou Products uses 800 units of a product per year on a continuous basis. The product has carrying costs of $50 per unit per year and order costs of $300 per order. It takes 30 days to receive a shipment after an order is placed and the firm requires a safety stock of 5 days usage in inventory.
(a) Calculate the economic order quantity (EOQ).
(b) Determine the reorder point. (Assume a 360-day year.)


Definitions:

Citric Acid Cycle

A series of chemical reactions used by aerobic organisms to generate energy through the oxidation of acetate into carbon dioxide.

ADP

Adenosine diphosphate, a molecule important in metabolism that is produced when ATP (adenosine triphosphate) is used for energy by cells.

Substrate-Level Phosphorylation

A metabolic process that produces ATP by transferring a phosphate group directly from a substrate molecule to ADP.

Citric Acid Cycle

An energy-generation method involving the conversion of acetate, sourced from carbohydrates, fats, and proteins, into carbon dioxide via a series of chemical reactions, utilized by all aerobic beings.

Related Questions