(12 points; 3 points each part) Problem 6 MUST SHOW YOUR WOR…
(12 points; 3 points each part) Problem 6 MUST SHOW YOUR WORK KRAY Electronics is forecasting next year’s optimal order size. The total demand is 14,890 units, with a carrying cost of $3 per unit. The cost of placing an order is $90. Calculate the EOQ If it takes 28 days to receive an order from suppliers, at what inventory level should another order be placed? Assume that KRAY Electronics uses 14,890 units every 250 days. c. Calculate the total cost d. Now, assume that the carrying cost is expected to increase by 4% in 2025 due to an increase in rentals of warehouse space. Calculate the new EOQ. What is the impact of the increase in carrying cost on EOQ?
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