Using the Data Below, Find the Economic Order Quantity (EOQ)

question 85

Essay

Using the data below, find the economic order quantity (EOQ), the total annual cost associated with the economic order quantity, and the reorder point.
$\begin{array}{|l|l|}\hline\text { Annual Demand: } & 15,000 \text { units } \\\hline \text { Weeks Operating: } & 52 \text { weeks/year } \\\hline \text { Ordering Costs: } & \$ 60 / \text { order } \\\hline \text { Holding Costs: } & \$ 7 / \text { unit/year } \\\hline \text { Lead Time: } & 5 \text { weeks } \\\hline\end{array}$

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Definitions:

Vicarious Learning

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The process of shipping and delivering parcels or packages from one location to another.