Furniture Manufacturers Inc.uses 20,000 loads of lumber per year.A load of lumber costs $500 and the carrying cost is 10 percent of the unit cost.The cost to order is $200 per order and the lead-time is three working days.Assuming 200 working days, determine:
(a)the economic order quantity.
(b)the reorder point.
(c)number of orders per year.
(d)working days between orders.

Question

Quizplus · Accepted Answer

The Answer of Furniture Manufacturers Inc.uses 20,000 loads of lumber per year.A load of lumber costs $500 and the carrying cost is 10 percent of the unit cost.The cost to order is $200 per order and the lead-time is three working days.Assuming 200 working days, determine:
(a)the economic order quantity.
(b)the reorder point.
(c)number of orders per year.
(d)working days between orders.