2. A toy manufacturer uses approximately 32,000 silicon chips annually. The chips are used at a steady rate during the 240 days the plant operates. Annual holding cost is P27 per chip and ordering cost is P1,080. Lead time = 1 week.
2. A toy manufacturer uses approximately 32,000 silicon chips annually. The chips are used at a steady rate during the 240 days the plant operates. Annual holding cost is P27 per chip and ordering cost is P1,080. Lead time = 1 week.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A. Find the reorder point (Complete steps of computation please)
B. What would be the ordering policy for this item?
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