Calculate the plush reorder without worshiping the number
Calculate an EOQ-style reorder quantity and adjust it for practical toy-store constraints.
Annual demand for penguin plush is 1,920 units. Ordering cost is $36 per order. Holding cost is $3.00 per unit per year. Supplier case pack is 24. Shelf max is 72 units, and winter break is two weeks away. EOQ balances ordering cost and holding cost, then retail constraints round the answer. The common trap is ordering the exact formula output and ignoring case packs, shelf capacity, and holiday demand volatility. Annual demand Use D = 1,920 units per year. EOQ starts with annual demand because it is balancing yearly order frequency against yearly carrying cost. Order and hold costs…
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