Operations Management, Binder Ready Version: An Integrated Approach
Operations Management, Binder Ready Version: An Integrated Approach
6th Edition
ISBN: 9781118952610
Author: R. Dan Reid, Nada R. Sanders
Publisher: WILEY
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Chapter 12, Problem 1.5CQ
Summary Introduction

Case Summary:The company has been providing spare parts for the equipment which are no longer in production therefore the reorder for the specific part would requires a delivery performance of 95% with a standard deviation of weekly demand to finish the goods stores at full manufacturing cost.

Interpretation:The impact on the overall inventory of a part number 650810/ss/R9 of a change from the present order policy to an EOQ-based policy.

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