Outlook Gateways has a demand of 75 Lakhs per year. Setup cost and holding cost are 29 and 35 per unit. Number of pieces in a order includes 2.3 Lakhs per order. Printing is done 800 days and 2 days to deliver this magazine. What can be the EOQ of this? With above data find the Setup Cost and Holding cost for a year. What is the Reorder Point.

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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Outlook Gateways has a demand of 75
Lakhs per year. Setup cost and holding cost
are 29 and 35 per unit. Number of pieces in
a order includes 2.3 Lakhs per order.
Printing is done 800 days and 2 days to
deliver this magazine.

What can be the EOQ of this? With above
data find the Setup Cost and Holding cost
for a year. What is the Reorder Point.

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