The Reddog Company predicts that 3,200 units of material will be used during the year.The expected daily usage is 15 units,there is an expected lead time of 10 days,and there is a safety stock of 200 units.The material is expected to cost $4 per unit.It is estimated that it will cost $25 to place each order.The annual carrying cost is $1 per unit.
a.Compute the order point.
b.Determine the most economical order quantity by use of the formula.
c.Compute the total cost of ordering and carrying at the EOQ point.

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The Answer of The Reddog Company predicts that 3,200 units of material will be used during the year.The expected daily usage is 15 units,there is an expected lead time of 10 days,and there is a safety stock of 200 units.The material is expected to cost $4 per unit.It is estimated that it will cost $25 to place each order.The annual carrying cost is $1 per unit.
a.Compute the order point.
b.Determine the most economical order quantity by use of the formula.
c.Compute the total cost of ordering and carrying at the EOQ point.

The Reddog Company Predicts That 3,200 Units of Material Will