(12 points; 3 points for each part) Problem 5 MUST SHOW YOUR…

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Questions

(12 pоints; 3 pоints fоr eаch pаrt) Problem 5 MUST SHOW YOUR WORK KRAY Electronics is forecаsting next year’s optimal order size. KRAY has been ordering parts in lots of 2,500 units. The estimated demand is 40,000 units, with a carrying cost of $2.5 per unit. The cost of placing an order is $100.   Calculate the EOQ   If it takes 14 days to receive an order from suppliers, at what inventory level should another order be placed? Assume that KRAY Electronics uses 40,000 units every 250 days?    c. Calculate the difference in total costs implied by EOQ and the current order quantity of 2,500    d. Now, assume that the carrying cost is expected to increase by 8% in 2025 due to an increase in rentals of warehouse space. Calculate the effect on EOQ.                      

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