For supply item LK, Boatman Company has been ordering 125 units based on the

recommendation of the salesperson who calls on the company monthly. The company has hired a new purchasing agent, who wants to start using the economic-order-quantity method and its supporting decision elements. She has gathered the following information: 

Annual demand in units 250

Days used per year 250

Lead time, in days 13

Ordering costs $100

Annual unit carrying costs $20

Determine the EOQ, average inventory, orders per year, average daily demand, reorder point, annual ordering costs, and annual carrying costs.

Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"