The Red-dog Company predicts that 3,200 units of material will be used during the year. The expected
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The Red-dog Company predicts that 3,200 units of material will be used during the year. The expected daily usage is 15 units, there is an expected lead time of 10 days, and there is a safety stock of 200 units. The material is expected to cost $4 per unit. It is estimated that it will cost $25 to place each order. The annual carrying cost is $1 per unit.
a. Compute the order point.
b. Determine the most economical order quantity by use of the formula.
c. Compute the total cost of ordering and carrying at the EOQ point
Related Book For
Automation Production Systems and Computer Integrated Manufacturing
ISBN: 978-0132393218
3rd edition
Authors: Mikell P.Groover
Posted Date: