Xander Company anticipates that usage of Component T will be 100 units daily,which equates to around 25,000 for the year.The material is expected to cost $5 per unit.Once an order is placed with its vendor,it takes five days to receive the goods,and the cost of placing each order is $50.As a result,Xander keeps 1,000 units on hand to avoid stockouts.The carrying cost associated with each unit is $10.
a.Compute the order point.
b.Determine the most economical order quantity.

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The Answer of Xander Company anticipates that usage of Component T will be 100 units daily,which equates to around 25,000 for the year.The material is expected to cost $5 per unit.Once an order is placed with its vendor,it takes five days to receive the goods,and the cost of placing each order is $50.As a result,Xander keeps 1,000 units on hand to avoid stockouts.The carrying cost associated with each unit is $10.
a.Compute the order point.
b.Determine the most economical order quantity.

Xander Company Anticipates That Usage of Component T Will Be