RCR Company has a secret ingredient in its production. This ingredient costs the company P60 each from the supplier and requires 5-day lead time. The ordering cost is P25 per order and the carrying...





RCR Company has a secret ingredient in its production. This ingredient costs the company P60 each from the supplier and requires 5-day lead time. The ordering cost is P25 per order and the carrying cost per unit is 10% of purchase price. (EOQ is 2,400 units). Use 360 days






Determine the following:




  1. Annual demand




  2. Frequency of order




  3. Total inventory cost




  4. Reorder point




  5. Reorder point if maximum daily usage is 2000 units




  6. Safety stock











Jun 01, 2022
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