TWM Company purchases 8000 units of product each year at a unit cost of $1000 The order cost is $3000 per order, and the holding cost per unit per year is $300 a) What are the economic order quantity,...

TWM Company purchases 8000 units of product each year at a unit cost of $1000
The order cost is $3000 per order, and the holding cost per unit per year is $300

a) What are the economic order quantity, the total annual cost, the number of orders to place in one year, and the reorder point when the lead time is two weeks?

b) What happens to the EOQ if backordering is possible and the stockout cost per unit per year is $100?

c) The supplier is offering a special discount and has temporarily reduced his unit price from $1000 to $900 What amount should be purchased to take advantage of the discount?

d) The supplier will increase his unit price from $1000 to $1100 on 1 January What amount should be purchased and delivered on 31 December before the price increase is effective if the stock position is 346 units? What will be the cost saving of the special purchase