Demand for an item is 1,000 units per year. Each order placed
costs $10, the annual...
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Operations Management
Demand for an item is 1,000 units per year. Each order placedcosts $10, the annual cost to carry items in inventory is $2 each.Suppose the lead time is 6 days. Assume sales occur over 360 daysof the year.
In what quantities should the item be ordered based on the EOQmodel? (2 points)
What is the reordering point? (2 points)
Explain the inventory management policy. (1point)
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Inventory management is theprocess by which inventory and stock items are supervisedInventory management is the proper management of flow of goods frommanufacturers to warehouses to the point of sale
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