Demand for an item is 50 units a month Unit cost is $25, re order cost is $25, holding cost is 25 of value a year, shortage cost for back orders is 40 of value a year How often the item is out of stock ...

To calculate how often the item is out of stock we can use the Economic Order Quantity EOQ ...

Demand for an item is 50 units a month. Unit cost is $25, re-order cost is $25,

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Demand for an item is 50 units a month. Unit cost is $25, re-order cost is $25, holding cost is 25% of value a year, shortage cost for back-orders is 40% of value a year.
How often the item is out of stock?

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Managerial Decision Modeling Business Analytics With Spreadsheet

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Authors: Nagraj Balakrishnan, Barry Render, Ralph Stair, Charles Munson

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Posted Date: Aug 21, 2023 04:58 AM

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Demand for an item is 50 units a month. Unit cost is $25, re-order cost is $25,

Question:

Expert Answer:

To calculate how often the item is out of stock we can use the Economic Order Quantity EOQ ... View the full answer

Managerial Decision Modeling Business Analytics With Spreadsheet

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