Question: Creative Equipment Components purchased annually 5,000 Cost per component $80 Production days per year 360 Ordering cost (per purchase order) $10 Annual carrying cost per
Creative Equipment Components purchased annually 5,000 Cost per component $80 Production days per year 360 Ordering cost (per purchase order) $10 Annual carrying cost per component $40 Normal delivery time (days) 2 Delivery Time (Days) Percentage of Occurrence 2 75 3 10 4 5 5 5 6 5 100 Data for Part 2: Acceptable risk of stocking out 10% Data for Part 3: Acceptable risk of stocking out 5% Data for Part 4: Acceptable risk of stocking out 5% Data for Part 5: Ordering cost (per purchase order) $2.50
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