QUESTION 4 Mega Inc. manufactures hairdryers for the commercial market. One of the crucial parts required for the assembly of this product is ‘Part 123’. Requirement for this part is 60000 units per year valued at RM 30 per unit and the handling cost is RM 0.50 per unit per month. The cost of preparing the order is RM 48. The plant operates 250 days per year. It is the company’s policy to maintain a buffer stock of 2 days usage. i. The maximum inventory level ii. The average level of inventory
QUESTION 4 Mega Inc. manufactures hairdryers for the commercial market. One of the crucial parts required for the assembly of this product is ‘Part 123’. Requirement for this part is 60000 units per year valued at RM 30 per unit and the handling cost is RM 0.50 per unit per month. The cost of preparing the order is RM 48. The plant operates 250 days per year. It is the company’s policy to maintain a buffer stock of 2 days usage. i. The maximum inventory level ii. The average level of inventory
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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QUESTION 4
Mega Inc. manufactures hairdryers for the commercial market. One of the crucial parts
required for the assembly of this product is ‘Part 123’. Requirement for this part is 60000
units per year valued at RM 30 per unit and the handling cost is RM 0.50 per unit per month.
The cost of preparing the order is RM 48. The plant operates 250 days per year. It is the
company’s policy to maintain a buffer stock of 2 days usage.
i. The maximum inventory level
ii. The average level of inventory
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