The Cove at UP recently hired Ray Bones as the new inventory replenishment manager. Ray is a recent Accounting graduate from the University of Portland and learned all about managing inventory in BUS 457. Ray needs to determine the length-of the build up and sell thru periods associated with an optimal ordering policy for an item with constant annual demand of 2200 units, unit cost $3790.5, annual unit holding cost percentage 0.28, and aggregate order placement cost $425 for an item with a production rate of 3820 (units/year). What are the cost minimizing order quantity and build up and sell thru periods?
The Cove at UP recently hired Ray Bones as the new inventory replenishment manager. Ray is a recent Accounting graduate from the University of Portland and learned all about managing inventory in BUS 457.
Ray needs to determine the length-of the build up and sell thru periods associated with an optimal ordering policy for an item with constant annual demand of 2200 units, unit cost $3790.5, annual unit holding cost percentage 0.28, and aggregate order placement cost $425 for an item with a production rate of 3820 (units/year).
What are the cost minimizing order quantity and build up and sell thru periods?
(specify answer as a whole number)
(specify answer to 3 decimal places).
(specify answer to 3 decimal places).
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