Question: Chapter 1 2 , question 9 , part d: Southeastern Bell stocks a certain switch connector at its central warehouse for supplying field service offices.
Chapter question part d:
Southeastern Bell stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly demand for these connectors is units. Southeastern estimates its annual holding cost for this item to be $ per unit. The cost to place and process an order from the supplier is $ The company operates days per year, and the lead time to receive an order from the supplier is working days.
a Find the economic order quantity.
b Find the annual holding costs.
c Find the annual ordering costs.
d What is the reorder point?
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