[See Solution] Demand for a popular athletic shoe is nearly constant at 800 pairs per week for a regional division of a national retailer. The cost per
Question: Demand for a popular athletic shoe is nearly constant at 800 pairs per week for a regional division of a national retailer. The cost per pair is $54. It costs $72 to place an order, and annual holding costs are charged at 22% of the cost per unit. The lead time is two weeks.
For 4 points each, answer the following questions:
- What is the EOQ?
- What is the reorder point?
- What is the cycle time?
- What is the total annual inventory cost?
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Deliverable: Word Document 