Question 1: (10%)
A retailer knows the annual demand for one of its product is 500,000 units, the ordering costs are £40 per order and the average carrying cost per unit is 110 pence. You are required to:
1. Determine the Economic Order Quantity, the number of orders per year and the reorder period given the data above.
2. Produce sensitivity analysis assuming a change of up to 7.5% up or down on each of the factors individually and on all factors simultaneously.
3. Make a final recommendation to the board of the company, as to the number of units it should include in each order.
PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET AN AMAZING DISCOUNT 🙂