A company uses components at a rate of 500 a month which are bought at the cost
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Question:
A company uses components at a rate of 500 a month which are bought at the cost of $1.2 each from the supplier. It costs $20 each time to place an order, regardless of the quantity ordered. The total holding cost is made up of the capital cost of 10% per annum of the value plus $0.03 per item per annum for insurance plus $0.06 per item per annum for storage plus $0.03 per item for deterioration. Find;
i. EOQ
ii. Frequency of ordering.
Total annual cost of the inventory.
iv. Time between each order
Related Book For
Managing Supply Chain and Operations An Integrative Approach
ISBN: 978-0132832403
1st edition
Authors: Thomas Foster, Scott E. Sampson, Cynthia Wallin, Scott W Webb
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