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Problem 2 MC Electronics supplies electronic chips to a company that incorporates the chips into refrigerators and other home appliances. One type of the chips has a monthly demand of 25 units. Carrying cost is OMR 12 per year, and the ordering cost is 20 OMR. a) Currently, the company is placing an order with the supplier once a month. What is the total annual inventory cost for this policy.

Problem 2 MC Electronics supplies electronic chips to a company that incorporates the chips into refrigerators and other home appliances. One type of the chips has a monthly demand of 25 units. Carrying cost is OMR 12 per year, and the ordering cost is 20 OMR. a) Currently, the company is placing an order with the supplier once a month. What is the total annual inventory cost for this policy.

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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Problem 2 MC Electronics supplies electronic chips to a company that incorporates the chips into refrigerators and other home appliances. One type of the chips has a monthly demand of 25 units. Carrying cost is OMR 12 per year, and the ordering cost is 20 OMR. a) Currently, the company is placing an order with the supplier once a month. What is the total annual inventory cost for this policy.
Transcribed Image Text:Problem 2 MC Electronics supplies electronic chips to a company that incorporates the chips into refrigerators and other home appliances. One type of the chips has a monthly demand of 25 units. Carrying cost is OMR 12 per year, and the ordering cost is 20 OMR. a) Currently, the company is placing an order with the supplier once a month. What is the total annual inventory cost for this policy.
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