A popular clothing Pull & Bear makes sweater for young people. The average demand for blue sweater is 100 per week. Pull & Bear's production facility has the capacity to sew 400 sweater per week. Setup cost is $351. The value of finished goods inventory is $40 per sweater. The annual per unit inventory holding cost is 20 percent of the items' value. a. Calculate POQ production order quantity and Reorder interval? b. Calculate the total annual holding cost and setup cost?

A popular clothing Pull & Bear makes sweater for young people. The average demand for blue sweater is 100 per week. Pull & Bear's production facility has the capacity to sew 400 sweater per week. Setup cost is $351. The value of finished goods inventory is $40 per sweater. The annual per unit inventory holding cost is 20 percent of the items' value. a. Calculate POQ production order quantity and Reorder interval? b. Calculate the total annual holding cost and setup cost?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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