A retailer s demand for stock keeping unit ( SKU ) 7 5 6 -
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Question:
A retailers demand for stock keeping unit SKURDU, white towels, is per year. The cost of placing an order is $ the cost per unit per year is $ and the holding cost is of product value a What is the economic order quantity?
b What will be the total logistics cost in this case?
c How many orders will the retailer place per year?
d The supplier sells these in cases of units only, such that any orders must be placed in multiples of units. This makes it impossible for the retailer to order the exact EOQ as calculated in part a Given this constraint, what order quantity would you recommend and why?
Related Book For
Operations management processes and supply chain
ISBN: 978-0136065760
9th edition
Authors: Lee J Krajewski, Larry P Ritzman, Manoj K Malhotra
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