The inventory management costs for a certain product are S=$28 to order, and H=$1 to hold for

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The inventory management costs for a certain product are S=$28 to order, and H=$1 to hold for a year. Annual demand is 2400 units. Consider the following ordering plans:

(a) Order all 2400 at one time

(b) Order 600 once each quarter

Calculate the annual holding, setup, and total costs associated with each plan and decide which plan is the best option.

	Q = 2400	Q = 600	Q = 200
Annual holding cost
Annual ordering cost
Total cost

Related Book For answer-question

Mathematical Applications for the Management Life and Social Sciences

ISBN: 978-1305108042

11th edition

Authors: Ronald J. Harshbarger, James J. Reynolds

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Posted Date: Sep 14, 2018 08:17 AM

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The inventory management costs for a certain product are S=$28 to order, and H=$1 to hold for

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Given S 8 H 1 Annual Demand A 2400 Units Q 2400600200 A... View the full answer

Mathematical Applications for the Management Life and Social Sciences

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