Pam runs a mail-order business for gym equipment. The annual demand for the TricoFlexers is 16,000. The annual holding cost per unit per yr is $2.50 and the cost to place an order is $50.There are 300 working days in a yr. What is the optimal order quantity? 2. Pam runs a mail-order business forgym equipment. Annual demand forthe TricoFlexers is 16,000. The annualholding cost per unit per year is $2.50and the cost to place an order is $50.There are 300 working days in a year.What is the optimal order quantity?

Optimal order quantity is the quantity level that the company should buy so that the inventory cost…

Pam runs a mail-order business for gym equipment. The annual demand for the TricoFlexers is 16,000. The annual holding cost per unit per yr is $2.50 and the cost to place an order is $50.There are 300 working days in a yr. What is the optimal order quantity?

Pam runs a mail-order business for gym equipment. The annual demand for the TricoFlexers is 16,000. The annual holding cost per unit per yr is $2.50 and the cost to place an order is $50.There are 300 working days in a yr. What is the optimal order quantity?

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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2. Pam runs a mail-order business for
gym equipment. Annual demand for
the TricoFlexers is 16,000. The annual
holding cost per unit per year is $2.50
and the cost to place an order is $50.
There are 300 working days in a year.
What is the optimal order quantity?

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The chapter presented various approaches for the control of inventory investment. Discuss three additional approaches not included that might involve supply chain managers.
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