Southeastern Bell stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly demand for these connectors is 14,800 units. Southeastern estimates its annual holding cost for this item to be $26 per unit. The cost to place and process an order from the supplier is $74. The company operates 300 days per year, and the lead time to receive an order from the supplier is 3 working days. a) What is the economic order quantity? [ units (round your response to the nearest whole number). b) What are the annual holding costs? $☐ (round your response to the nearest whole number). c) What are the annual ordering costs? $☐ (round your response to the nearest whole number). d) What is the reorder point? ☐ units (round your response to the nearest whole number).

Southeastern Bell stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly demand for these connectors is 14,800 units. Southeastern estimates its annual holding cost for this item to be $26 per unit. The cost to place and process an order from the supplier is $74. The company operates 300 days per year, and the lead time to receive an order from the supplier is 3 working days. a) What is the economic order quantity? [ units (round your response to the nearest whole number). b) What are the annual holding costs? $☐ (round your response to the nearest whole number). c) What are the annual ordering costs? $☐ (round your response to the nearest whole number). d) What is the reorder point? ☐ units (round your response to the nearest whole number).

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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K Southeastern Bell stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly demand for these connectors is 14,100 units. Southeastern estimates its annual holding cost for this item to be $22 per unit. The cost to place and process an order from the supplier is $73. The company operates 300 days per year, and the lead time to receive an order from the supplier is 3 working days. a) What is the economic order quantity? units (round your response to the nearest whole number). ncorre
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