?Alexis Company uses
979979
units of a product per year on a continuous basis. The producthas a fixed cost of
?$4242
per? order, and its carrying cost is
?$44
per unit per year. It takes 5 days to receive a shipment afteran order is? placed, and the firm wishes to hold 10? days' usage ininventory as a safety 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 firmdoes not hold the safety? stock: (1) order? cost, (2) carrying?cost, (3) total inventory? cost, (4) reorder? point, (5) economicorder quantity.
a. ? Alexis' EOQ is
nothing
units.???(Round to the nearest whole? number.)
