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Alexis company uses 800 units of a product per year on a continuous basis the product has a fixed cost of $50

Accounting

Alexis company uses 800 units of a product per year on a continuous basis the product has a fixed cost of $50.00 per order, and its carrying cost is $2.00 per year. It takes 5 days to receive a shipment after an order is placed, and the firm wishes to hold 10 day’s usage in inventory as a safety stock. Calculate the EOQ Determine the average level of inventory Determine the reorder point Indicate which of the following variables change if the firm does note hole the safety stock, 1, order cost, 2. Carrying cost 3. Total inventory cost, 4. Reorder point, 5. Economic order quantity.

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