Consider a product with a daily demand of 275 units, a setup cost of $78. Annual holding

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Consider a product with a daily demand of 275 units, a setup cost of $78. Annual holding cost are 13.5%. Unit cost is $56.75. The firm operates and experiences demand 250 days per year. Lead time 3 days.

a. What is the economic order quantity?

b. What is the maximum inventory level that the company is capable of having on hand?

c. What is the cost of managing the inventory?

d. What is the number of orders?

e. What is the total cost, including the unit cost?

f. What if the firm decided that the ordering quantity needs to be 1,300 . What would the ordering costs be?

Related Book For answer-question

Precalculus Concepts Through Functions A Unit Circle Approach To Trigonometry

ISBN: 9780137945139

5th Edition

Authors: Michael Sullivan

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Posted Date: Nov 29, 2023 06:42 AM

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Consider a product with a daily demand of 275 units, a setup cost of $78. Annual holding

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stepbystep Given information Daily demand 275 units Setup cost 78 Annual holding cost rate 135 Unit ... View the full answer

Precalculus Concepts Through Functions A Unit Circle Approach To Trigonometry

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