Question: Southeastern Bell stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly demand for these connectors is 1 5
Southeastern Bell stocks a certain switch connector at its central warehouse for supplying
field service offices. The yearly demand for these connectors is units. Southeastern estimates its
annual holding cost for this item to be $ per unit. The cost to place and process an order from the
supplier is $ The company operates days per year and the lead time to receive an order from the
supplier is working days.
a Find the economic order quantity.
b Find the annual holding costs.
c Find the annual ordering costs.
d What is the reorder point?
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