Average demand is 2500 units per year, order cost is $50 per order, holding cost rate is
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Average demand is 2500 units per year, order cost is $50 per order, holding cost rate is 20 % of the purchase cost per unit per year, and the cost of one unit is $42. What is the total inventory cost per year? If a cost reduction per unit of $1 can be achieved by buying 1000 at a time, should the buyer take the discount? Justify your answer.
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Related Book For
Operations Management A Supply Chain Process Approach
ISBN: 978-1483383064
1st edition
Authors: Joel D. Wisner
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