Question

A local retailer purchased inventory from an overseas supplier and believes the motions of the EOQ moet are met wat was tomar show annual demand) -28,217 units, ordering cost (S) - $42 per order, and holding cost-$4 per unit per year How many times per year with repliester inventory of this material for 'How many orders will she place in one year?) Demand 28,217 unit per year ordering cost $42 per order holding cost $4 per unit per year Excel Access

Answer 1

Answer:

Information given in the question is as under:

D = Annual Demand	28217	unit per year
S = Ordering cost	42	$ per order
H = Holding cost	4	$ per unit per year

Economic Order Quantity (EOQ) = √2DS/H =

769.78

units

N = Number of orders to be placed per year = D / EOQ = 28217 / 769.78 =

36.66

orders

Therefore,

Number of orders to be placed per year = 36.66 orders per year

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