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Barbara Bright is the purchasing agent for West Value Company. West Valve sells industrial values and fluid control devices. One of

Barbara Bright is the purchasing agent for West Value Company. West Valve sells industrial values and fluid control devices. One of the most popular values is the Western, which has an annual demand of 4,000 units. The cost of each value is $90, and the inventory carrying cost is estimated to be 10% of the cost of each value. Barbara has made a study of the costs involved in placing an order for any of the values that West Valve stocks and she has concluded that the average ordering cost is $25 per order. Furthermore, it take about two weeks for an order to arrive from the supplier, and during this time the demand per week for West values is approximately 80. a) What is the EOQ? (b) What is the ROP?
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EOQ = 149.07 unitsRe-order Point  (ROP) =  160 unitsExplanation:The Economic Order Quantity (EOQ) is the order size that minimizes the balance of ordering cost and holding cost. At the EOQ, the carrying cost is equal to the holding cost. It is computed using he formulae belowEOQ = √ (2× Co× D)/ChEOQ = √ (2× 25× 4000)/(10%× 90)EOQ = 149.07 unitsRe-order Point  (ROP) The level of stock at which  are replenishment order will be placedMaximum consumption × maximum lead time= 80× 2 =  160 units... Show More
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someone i feel is a leader in my life id have to say would be my mother because she has give me great advice in life and got me out of tough situations. some characteristics she has are creativity, honesty, commitment, respect for others, and communication. one example of a situation when she demonstrated leadership was when i was working late on homework and i started to get stressed and got upset, she asked me if i needed some , and she me with my work. she demonstrated communication and commitment.i don't know if this is exactly what your looking for but i hope this !... Show More
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