Question: Phillip Flamm's Computer Store in Texas sells a printer for $ 2 1 0 . Demand is constant during the year, and annual demand is

Phillip Flamm's Computer Store in Texas sells a printer for $210. Demand is constant during the year, and annual demand is forecasted to be 960 units. Holding cost is $40 per unit per year, whereas the cost of ordering is $55 per order. Currently, the company is ordering 12 times per year (80 units each time). There are 250 working days per year, and the lead time is 9 days.
a) Given the current policy of ordering 80 units at a time, the total of the annual ordering cost and the annual holding cost is $ (round your response to the nearest whole number).
b) If the company used the absolute best inventory policy, the total of ordering and holding cost is $ q,(round your response to the nearest whole number).
c) The reorder point is units (round your response to the nearest whole number).

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!