Covid-19 pandemic resulted in a rush of purchases and stock outs on numerous items, as well as
Question:
Covid-19 pandemic resulted in a rush of purchases and stock outs on numerous items, as well as overstocking in certain categories due to shutdowns in other industries. In addition, many businesses' use of e-commerce ordering has skyrocketed. As a result, many businesses are experiencing inventory shortages.
(a) Describe the types of inventory normally maintained by the firm and give suggestions to improve them in order to sustain during this pandemic.
(b) Razer company stocks and sells a particular brand of laptop. The annual demand is 25,000 units. The ordering cost is RM1562.50 per order and annual holding cost per unit is RM50.
i. Calculate the optimal number of laptop per order
ii. Determine the number of orders per year, Nn
iii. Calculate the total inventory cost.
Managerial Decision Modeling with Spreadsheets
ISBN: 978-0136115830
3rd edition
Authors: Nagraj Balakrishnan, Barry Render, Jr. Ralph M. Stair