Question: A factory purchases subassemblies from a supplier using a ROP system. This is the data (assume 52 weeks in a year): In-class Exercise: ROP Inventory

A factory purchases subassemblies from a supplier

A factory purchases subassemblies from a supplier using a ROP system. This is the data (assume 52 weeks in a year): In-class Exercise: ROP Inventory Demand= 500 units per week LT=4 weeks Safety Stock=300 units Holding cost=15% of cost per year per unit Purchasing Cost= 25.00 per unit Ordering cost= 300.00 per order Question 1 (1 point) How much do they spend in inventory holding costs in a year 1125 1875 6825 7575 8700 Question 2 (1 point) How much would they save if they reduced lead time to 2 weeks (assuming safety

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