A bakery uses 25,000 lbs. of flour per year. The mill charges a delivery cost of...
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A bakery uses 25,000 lbs. of flour per year. The mill charges a delivery cost of 75$ per order. The delivery lead time is 1 week. Due to special storage requirements, it costs the bakery $1000 to store 100 lbs. of flour during a year. The bakery orders 1,000 lbs. in each order. a. How many lbs. of flour are held in the cycle inventory? b. How many lbs. of flour are held in the pipeline inventory? c. What is the inventory holding cost per year? d. What is the ordering cost per year? e. What is the EOQ? f. What is the TBOEOQ (TBO when using the EOQ)? A bakery uses 25,000 lbs. of flour per year. The mill charges a delivery cost of 75$ per order. The delivery lead time is 1 week. Due to special storage requirements, it costs the bakery $1000 to store 100 lbs. of flour during a year. The bakery orders 1,000 lbs. in each order. a. How many lbs. of flour are held in the cycle inventory? b. How many lbs. of flour are held in the pipeline inventory? c. What is the inventory holding cost per year? d. What is the ordering cost per year? e. What is the EOQ? f. What is the TBOEOQ (TBO when using the EOQ)?
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Practical Management Science
ISBN: 978-1305250901
5th edition
Authors: Wayne L. Winston, Christian Albright
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