Each day, a company uses 120 bags of industrial cleaner. The bags can be shipped to the

Question:

Each day, a company uses 120 bags of industrial cleaner. The bags can be shipped to the company each day at a rate of 200. The cost of placing an order is $90, and the carrying charge is 15% of the item’s $30 cost. The company operates 360 days per year. Calculate the order quantity that minimizes the company’s inventory-associated costs. How many days are there between orders for the order quantity you calculated?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Managing Supply Chain and Operations An Integrative Approach

ISBN: 978-0132832403

1st edition

Authors: Thomas Foster, Scott E. Sampson, Cynthia Wallin, Scott W Webb

Question Posted: