Business, 23.06.2020 19:01 spezzatti221

Economic order quantity for retailer. Wonder Line (WL) operates a megastore featuring sports merchandise. It uses an EOQ decision model to make inventory decisions. It is now considering inventory decisions for its Los Angeles Galaxy soccer jerseys product line. This is a highly popular item. Data for 2017 are as follows: Expected annual demand for Galaxy jerseys 9,000Ordering cost per purchase order $250Carrying cost per year $8 per jersey Each Jersey costs wi $50 and sells for $100. The S8 carrying cost per Jersey per year consists of the required return on investment of S5 00 $3.00 in relevant insurance, handling, and storage costs. The purchasing lead time is 5 days. WL is open 365 days a year Required: 1. Calculate the EOQ. 2. Calculate the number of orders that will be placed each year. 3. Calculate the reorder point.

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Economic order quantity for retailer. Wonder Line (WL) operates a megastore featuring sports merchan...

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