What would be the economic order quantity? What will be the annual inventory holding costs. How many orders would be made each year? What would be the annual order cost? What is the time between orders and the reorder point (ROP)?
What would be the economic order quantity? What will be the annual inventory holding costs. How many orders would be made each year? What would be the annual order cost? What is the time between orders and the reorder point (ROP)?
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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In addition, this same factory shop uses 10 brackets per day during the year. The brackets are purchased from a supplier 90km away. The costs incurred include holding costs per bracket per year: R1.50, order cost per order: R18.75, Lead time is 2 days, working days per year is 250 days.
What would be the economic order quantity? What will be the annual inventory holding costs. How many orders would be made each year? What would be the annual order cost? What is the time between orders and the reorder point (ROP)?
Transcribed Image Text:Code
XX1
B66
3CPO
33CP
R2D2
RMS
Unit Cost (R)
5.84
5.40
1.12
74.54
2.00
2.08
Annual Demand
1,200
1,110
896
1,104
1,110
961
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