TASK-1 Using EOQ technique calculate therequired items
Tim John is the purchasing manager at the headquarters of amultinational fast food chain with a central inventory operation.Tim's fastest-moving inventory item has a demand of 30 units perday. The cost of each unit is $150, and the inventory carrying costis $5 per unit per year. The average ordering cost is $70 perorder. (It is a corporate operation, and there are 300 working daysper year)
- What is the EOQ?
- What is the average inventory if the EOQ is used?
- What is the optimal number of orders per year?
- What is the optimal number of days in between any twoorders?
- What is the annual cost of ordering and holding inventory?
- What is total inventory management cost?
- What is total materials cost
- What is the total annual inventory cost to be recorded inaccounts?
