Question: A company assembles several components to make a product. One of the components needed are purchased for $32.3 per unit from a supplier in an

A company assembles several components to make a
A company assembles several components to make a product. One of the components needed are purchased for $32.3 per unit from a supplier in an order quantity of 610 units. Annual demand of the component is constant at 16,551 units, the holding cost per year is 19.1 percent of the unit purchase price, and the cost to place an order is $26. The order lead time is 10 days. The company operates 250 days per year. Assume EOQ model is appropriate. Use at least 4 decimal places. What is the average inventory level associated with the current order quantity

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!