Homework Answers
EOQ = sqrt((2*Annual demand*Order cost)/holding cost)
= sqrt((2*100000*30)/(25%*5.5)) = 2088.931871
Number of orders = 100000/2088.931871 = 47.8713554
So expected time interval between placing orders =
365/47.8713554 = 7.624601329 = 1 week (Approximately)
(Ans)
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