Question: Why can the item cost be dropped from the simple
Why can the item cost be dropped from the simple EOQ formula? Are item costs important when quantity discounts are given? Why?
Answer to relevant QuestionsWhat is the difference between a requirements philosophy and a replenishment philosophy of inventory management? Why is this difference important? The Always Fresh Grocery Store carries a particular brand of tea that has the following characteristics: Sales = 8 cases per week Ordering cost = $10 per order Carrying charge = 20 percent per year Item cost = $80 per ...The local Toyota dealer has to decide how many spare shock absorbers of a particular type to order for repairing Toyota automobiles. This shock absorber has a demand of four units per month and costs $25 each. The carrying ...A supplier has come to you and offered the following deal. If you buy 29 or fewer cases of cleaning solution, the cost will be $25 for each case. If you buy 30 or more cases, the cost will be $20 per case. Assume your cost ...A vendor has quoted a lead time of 10 weeks for the delivery of a part. Your purchasing manager says the part can be delivered in 3 weeks if necessary. Of course, the vendor disagrees. Who is correct? Explain.
Post your question