Question: Danny Steel, Inc., fabricates various products from two basic inputs, bar stock and sheet stock. Bar stock is used at a steady rate of 1
Danny Steel, Inc., fabricates various products from two basic inputs, bar stock and sheet stock. Bar stock is used at a steady rate of units per year arid costs $ per bar. Sheet stock is used at a rate of units per year and costs $ per sheet. The company uses a percent annual holding cost rate, and the fixed cost to place an order is $ of which $ is the cost of placing the purchase order and $ is the fixed cost of a truck delivery. The variable ie per unit charge trucking cost is included in the unit price. The plant runs days per year. Chapter Using a week seven days as the base interval, round the order intervals calculated with EOQ for bar stock and sheet stock to the nearest power of days... If you charge the fixed trucking fee only once for deliveries that coincide, what is the annual cost?
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