CAED101 - DE CASTRO - ACN1 - EOQ Activity
CAED101 - DE CASTRO - ACN1 - EOQ Activity
ACN1 | CAED101
2(12,000)($25)
=√
(0.20)($2.50)
600,000
=√
$0.50
= √1,200,000
= 1,095.4451 ∿ 1,095.45
b. Reorder point
r = dm
12,000
= (5)
250
= 240
c. Cycle time
250Q∗
T=
𝐷
250(1,095.45)
=
12,000
273,862.50
=
12,000
= 22.821875 ∿ 22.82 days