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Use the following scenario to answer the next two questions (Questions 15 and 16): Ye’ Olde Barrel Shop sells oak barrels to a local winery. The Master Cooper would like to reduce her oak lumber inventory by determining the optimal number of oak boards to order. The annual demand averages 50,000 boards and the order cost is $150.00 per order. Holding cost is estimated to be 20%. The purchase cost of each board is $20.00. The standard deviation of daily demand is 3 boards. The standard deviation of lead time is 1.0 days. Assume 280 days in the year and an average lead time of 3 days. What is the EOQ? Group of answer choices Less than or equal to 1920 Units More than 1920 Units, but less than or equal to 1940 Units More than 1940 Units, but less than or equal to 1960 Units More than 1960 Units
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Use the following scenario to answer the next two questions (Questions 15 and 16): Ye’ Olde Barrel S...
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