Question: The company has a monthly demand for a certain component of 6 0 0 0 units. The company's leader is considering a decision to procure
The company has a monthly demand for a certain component of units. The company's leader is considering a decision to procure this component in order to diversify the supply sources and reduce costs. The leader requests the procurement and production departments to compile relevant data for decisionmaking. The component is purchased at a price of $ per unit. The cost of processing an order and placing it once is $X The annual warehouse rental fee is $ per unit, the depreciation cost for equipment serving the warehouse is $Y per unit per year, and the interest rate is
Q What is the optimal order quantity? What is the total inventory cost? points
Q How many orders should be placed? how long does it take between the orders? and reorder point if leadtime is X days?
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