Annual demand for a product is 250 units. Annual carrying cost per unit of product is $1.

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Annual demand for a product is 250 units. Annual carrying cost per unit of product is $1. Ordering cost per order is $20. Assume a year is 350 days.

1. How much should we order each time to minimize our total cost?

2. How many times should we order?

3. What is the length of an order cycle?

4. Compute the total ordering costs.

5. Compute the total costs.

6. Compute the flow time. Throughput is equal to demand. Average inventory is half of maximum inventory.

Related Book For answer-question

Operations and Supply Chain Management

ISBN: 978-0078024023

14th edition

Authors: F. Robert Jacobs, Richard Chase

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Posted Date: Apr 08, 2021 03:00 AM

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Annual demand for a product is 250 units. Annual carrying cost per unit of product is $1.

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Operations and Supply Chain Management

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