A- A company changes turret heads used in the manufacturing process every day. The firm uses...
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A- A company changes turret heads used in the manufacturing process every day. The firm uses 40 machines to process the metal parts. Each machine involves two turret heads. The company orders these parts periodically. The cost of order is $200, and the keeping cost of each turret head is $. 0.05 per day. The lead time for these parts is 15 days. Please determine the optimal inventory policy for ordering turret heads. 1. What is the Order quantity (number of units)? 2. What is the associated cycle length? 3. What is the reorder point? 4. What is the daily inventory cost? A- A company changes turret heads used in the manufacturing process every day. The firm uses 40 machines to process the metal parts. Each machine involves two turret heads. The company orders these parts periodically. The cost of order is $200, and the keeping cost of each turret head is $. 0.05 per day. The lead time for these parts is 15 days. Please determine the optimal inventory policy for ordering turret heads. 1. What is the Order quantity (number of units)? 2. What is the associated cycle length? 3. What is the reorder point? 4. What is the daily inventory cost?
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Determining the Optimal Inventory Policy for Turret Heads 1 Order Quantity Q We can use the Economic ... View the full answer
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