E. O. Cue, Materials Management Specialist for Cue's Custom Billiard Balls, periodically needs to place orders for ivory, one of the raw materials used in producing billiard balls. Mr. Cue knows that manufacturing uses ivory at a rate of 50 kilograms each
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A. What is Mr. Cue's economic order quantity (EOQ) for ivory?
B. At what reorder point should Mr. Cue reorder ivory?
C. If Mr. Cue were to order 1000 kilograms (instead of EOQ) of ivory at a time, what would be the length of the cycle between orders?
D. If Mr. Cue were to order 1000 kilograms (instead of EOQ) of ivory at a time, what would be the average level of inventory?
7 years ago
Materials Management Specialist
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