Question: What is the total annual cycle - inventory cost ( i . e . , holding cost + ordering cost ) of the two parts,
What is the total annual cycleinventory cost ie holding cost ordering cost of the two parts, respectively, based on their current ordering quantity?
What is the economic order quantity EOQ for the two parts? What would be the total cost ie holding cost ordering cost of the two parts, respectively, if they were to switch to EOQ? How are they different from the current costs?
What are the reorder points R for the two parts, respectively, if Sue were to adopt a continuousreview system Qsystem
What are the time between orders P and the target inventory T for the two parts, if Sue were to adopt a periodreview system Psystem
Which ordering system Q or P would you recommend for each of the two parts? Why?
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