Harrowing Company has the following information: Annual demand  =3,500 units Order size = 500 units Ordering cost per order =$400 Carryingcosts per unit for one year =$40 Lead time (maximum 20 days)=10days Maximumd use =25 units Work year =250days Required: a.Determine the economic order quantity for Harrowing b. Determine the reorder point. c. What is the safety stock needed to prevent stockouts?

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Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints
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Harrowing Company has the following information:

Annual demand  =3,500 units

Order size = 500 units

Ordering cost per order =$400

Carryingcosts per unit for one year =$40

Lead time (maximum 20 days)=10days

Maximumd use =25 units

Work year =250days

Required:

a.Determine the economic order quantity for Harrowing

b. Determine the reorder point.

c. What is the safety stock needed to prevent stockouts?

 

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