A firm is presently using the basic EOQ model and is considering switching to the production order quantity model (i.e., receiving gradual deliveries over time). If all the cost and demand parameters stay the same, what changes should the firm expect?
Answer to relevant QuestionsSuppose you have been given the task of reducing inventory in your company, without negatively impacting customer service. What actions might you be able to take to accomplish this task? Suppose Jones Corporation in the above problem determined that its annual inventory carrying cost = 18%. The item unit cost was as follows: Item 1 = $25.00 Item 2 = $60.00 Item 3 = $5.00 Item 4 = $10.00 Item 5 = ...A sporting goods company has a distribution center which maintains inventory of fishing rods. The fishing rods have the following demand, lead time and cost characteristics: Average demand = 100 units per day, with a ...Suppose you are a corporate buyer. One of your suppliers delivers a particular part in 12 days on average, with a standard deviation of 3. The daily usage averages 20 units per day with a standard deviation of 4. What is the ...In the same situation as described in problem 26, a text costs $100 and sells for $200. In this case, however, you cannot salvage any value from copies that do not sell because a new edition is published every semester. ...
Post your question