A distributor of large appliances needs to determine the order quantities for the various products it carries

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A distributor of large appliances needs to determine the order quantities for the various products it carries. The following data refer to a specific refrigerator in its product line:

Fixed cost to place an order        $400

Holding cost                                           20% of product cost per year

Cost of one refrigerator                $500

Monthly demand                               150

Lead time                                       2 weeks

Assume there are 4 weeks in a month.

1. What is the economic order quantity (EOQ)?
2. What is the reorder point?