Suppose the XYZ Company, which has an annual demand of 12,000 units per year, order cost of
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Suppose the XYZ Company, which has an annual demand of 12,000 units per year, order cost of $ 25, and annual holding cost per unit of $ 0.50, decides to oper-ate with a planned shortage inventory policy with the backorder cost estimated as $ 5 per unit per year.
a. Determine the EOQ.
b. Determine the maximum number of backorders.
c. Determine the maximum inventory level.
d. Determine the cycle time in workdays (assume 250 workdays per year).
e. Determine the total inventory cost per year.
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Related Book For
Service Management Operations Strategy Information Technology
ISBN: 978-0077841201
8th edition
Authors: James Fitzsimmons, Mona Fitzsimmons, Sanjeev Bordoloi
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