A two bin approach is used to control inventory for a certain low cost hardware item. Each
Question:
(a) What is the imputed holding cost per unit for this item, based on the data given?
(b) If the actual annual holding cost per unit is 5 cents, what lot size should be ordered?
(c) How much does the current two bin approach cost the company per year, compared to using the economic order quantity?
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Related Book For
Automation Production Systems and Computer Integrated Manufacturing
ISBN: 978-0132393218
3rd edition
Authors: Mikell P.Groover
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