Laboratory Exercise 6
Laboratory Exercise 6
Laboratory Exercise 6
EOQ Table
Economic Order Quantity 396.96
Request Order Quantity 380.00
% Change from EOQ -4.27
Lead Time 6
Average Usage 35
Annual Carrying Cost 15.00
Stockout Cost 150.00
Number of Order per year 10
The reorder point with safety stock that will minimize the cost of inventory for Westside
Auto is 400 units.
irectly from the supplier. Westside’s generator production operation, which is operated
ts annually). Assume that the ordering costs are $25 per order, the unit cost is $2.50 per
50 working days per year and a lead time of 5 days. Westside has determined that the cost
mpute the reorder point with safety stock.