Question: The Demand for machine parts is steady and predictable at 9 8 6 units per year. The unit cost of the parts is $ 5
The Demand for machine parts is steady and predictable at units per year. The unit cost of the parts is $The supplier charges a fixed cost of $ per order to cover the costs of shutting down normal production to produce the requested parts. Our company estimates an opportunity cost for money at per year. It also estimates that the floor space required to store a metal part costs $ per year. If the replenishment lead time is weeks, what is the reorder point, if the economic order quantity is Assume weeks per year.
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