= Homework: Chapter 14 Homework Question 4, P14-6 (simil... Part 1 of 4 HW Score:...
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= Homework: Chapter 14 Homework Question 4, P14-6 (simil... Part 1 of 4 HW Score: 10%, 1 of 10 points O Points: 0 of 1 0 Save EOQ, reorder point and safety stock Alexis Company uses 956 units of a product per year on a continuous basis. The product has a fixed cost of $57 per order, and its carrying cost is $4 per unit per year. It takes 5 days to receive a shipment after an order is placed, and the firm wishes to hold 10 days' usage in inventory as a safely stock. a. Calculate the EOQ. b. Determine the average level of inventory. (Note: Use a 365-day year to calculate daily usage.) c. Determine the reorder point. d. Indicate which of the following variables change if the firm does not hold the safety stock: (1) order cost, (2) carrying cost, (3) total inventory cost, (4) reorder point, (5) economic order quantity a. Alexis' EOQ IS units. {Round to the nearest whole number.)
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