Question: M.P VanOyen Manufacturing stocks a certain switch connector at its central warehouse for supplying service offices. The yearly demand for these connectors is 15,000units. M.P
M.P VanOyen Manufacturing stocks a certain switch connector at its central warehouse for supplying service offices. The yearly demand for these connectors is 15,000units. M.P VanOyen Manufacturing estimates its annual holding cost for this item to be 25$ per unit. The cost to place and process an order from the supplier is 75$. The company operates 300 days per year and the lead time to receive an order from the supplier is 8 wording days. (a) Find the economic order quantity. (b) Find the annual holding cost. (c) Find the annual ordering cost. (d)What is the reorder point
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
