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Master Company has obtained the following costs and other information pertaining to one of its materials: Working days per year Normal use per day (units) Maximum use per day (units) 250 Lead time ( in days) 5 500 Cost of placing one order Р36 600 Carrying cost per unit per year P4 Required: Calculate the economic order quantity а. b. Determinethe safety stock C. Compute the order point

Master Company has obtained the following costs and other information pertaining to one of its materials: Working days per year Normal use per day (units) Maximum use per day (units) 250 Lead time ( in days) 5 500 Cost of placing one order Р36 600 Carrying cost per unit per year P4 Required: Calculate the economic order quantity а. b. Determinethe safety stock C. Compute the order point

Practical Management Science
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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Master Company has obtained the following costs and other information pertaining to one of its materials: Working days per year Normal use per day (units) Maximum use per day (units) 250 Lead time ( in days) 500 Cost of placing one order Р36 600 Carrying cost per unit per year P4 Required: a. Calculate the economic order quantity b. Determinethe safety stock c. Compute the order point
Transcribed Image Text:Master Company has obtained the following costs and other information pertaining to one of its materials: Working days per year Normal use per day (units) Maximum use per day (units) 250 Lead time ( in days) 500 Cost of placing one order Р36 600 Carrying cost per unit per year P4 Required: a. Calculate the economic order quantity b. Determinethe safety stock c. Compute the order point
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