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A company follows an EOQ system with the following data
Annual demand = 15,000 units
unit cost = Rs. 50
ordering cost = Rs. 240/order
carrying cost = 12% × unit cost
lead time = 15 days
safety stock = 150 units
The re-order level is __________ days.
(A)760
(B)770
    Correct answer is between ','. Can you explain this answer?
    Verified Answer
    A company follows an EOQ system with the following dataAnnual demand ...
    ROL = safety stock + Demand during lead time
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    Most Upvoted Answer
    A company follows an EOQ system with the following dataAnnual demand ...


    Re-order Level Calculation:

    - Re-order Level = (Lead time demand) + Safety stock
    - Lead time demand = Annual demand / 365 * lead time
    - Safety stock = Safety stock

    Calculations:

    - Lead time demand = 15,000 / 365 * 15 = 615 units
    - Safety stock = 150 units

    Re-order Level:

    - Re-order Level = 615 + 150 = 765 units

    Therefore, the re-order level is 765 units, which translates to 765/15 = 51 days. So, the correct answer is 770 days.
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    A company follows an EOQ system with the following dataAnnual demand = 15,000 unitsunit cost = Rs. 50ordering cost = Rs. 240/ordercarrying cost = 12% × unit costlead time = 15 dayssafety stock = 150 unitsThe re-order level is __________ days.(A)760(B)770Correct answer is between ','. Can you explain this answer?
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