manufacturer uses 30,000 units of a particular type of metal frame every year, which are bought from
Fantastic news! We've Found the answer you've been seeking!
Question:
manufacturer uses 30,000 units of a particular type of metal frame every year, which are bought from a supplier. The frames are used at a reasonably steady rate during the 250 working days per year. The annual cost of keeping one frame in inventory is $15, and it costs $90 to place an order.
1. What is the manufacturer's optimal order quantity?
2. What is the minimum annual total inventory cost that the manufacturer can achieve?
Related Book For
Business Logistics Supply Chain Management
ISBN: 978-0130661845
5th edition
Authors: Ronald H. Ballou
Posted Date: