Question: ABC Electronics stocks a certain switch connector at its central warehouse for supplying Natural gas fields service offices. The yearly demand for these connectors is
ABC Electronics stocks a certain switch connector at its
central warehouse for supplying Natural gas fields service
offices. The yearly demand for these connectors is
units. The company estimates its annual holding
cost for this item to be LE per unit. The cost to place
and process an order from the supplier is LE The
company operates days per year, and the lead time to
receive an order from the supplier is working days.
aFind the economic order quantity.
bFind the annual holding costs.
c Find the annual ordering costs.
dWhat is the reorder point?
Recalculate the previous results if the warehouse manager
of the company decides to consider a risk level of stockout assume a suitable value of sigma
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