# production management eoq problems

A store faces demand for one of its popular products at a constant rate of 3,300 units per year. It costs the store \$65 to process an order to replenish stock and \$15 per unit per year to carry the item in inventory. A shipment from the supplier is typically received 10 working days after an order is placed. The store buys the product for \$70 per unit and sells it for \$140 per unit. At the moment the store uses an order quantity of 220 units. Assume EOQ model assumptions are satisfied and 300 days a year.

If there are two blank boxes in any question, then you must put one of the following words in
the second box: units, dollars, days, year, orders per year, dollars per year, units per order
Answer the following questions (you should not use any commas in your answer)

You must solve questions [1] through [6] assuming the store uses the current order quantity.
Questions [8] through [10] must be solved using the optimal order quantity.

[1] To fulfill the demand, the store must place [removed].

You must use at least 4 decimal places in your calculation
and answer. It is best not to round anything.