Magnetron, Inc. manufactures microwave ovens for the commercial market. Currently, Magnetron is producing part 2104. Next year's
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Magnetron, Inc. manufactures microwave ovens for the commercial market. Currently, Magnetron is producing part 2104. Next year's requirement for part 2104 is estimated at 20,000 units. Part 2104 is valued at $50 per unit, and the combined storage and handling cost is $8 per unit per year. The cost of preparing the order and making the production setup is $200.
a. Compute the economic order quantity
b. How many orders will be placed every year?
c. What is the expected annual holding cost?
d. What has the expected annual order cost?
Related Book For
Chemistry The Central Science
ISBN: 978-0321696724
12th edition
Authors: Theodore Brown, Eugene LeMay, Bruce Bursten, Catherine Murphy, Patrick Woodward
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