A company has estimated net requirements for a particular part as follows a Apply the economic order quantity and the part period balancing procedures to solve this problem b What important assumptions are involved in each of the approaches used in part a ...

Ordering cost associated with this part is 200 Estimated inventory carrying cost is 250 per unit per month calculated on average inventory Currently no parts are available in inventory The company wis ...

A company has estimated net requirements for a particular part as follows: a. Apply the economic order

Question:

A company has estimated net requirements for a particular part as follows:
a. Apply the and the part period balancing procedures to solve this problem.
b. What important assumptions are involved in each of the approaches used in part a?
Economic Order Quantity
Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs. This production-scheduling model was developed in 1913 by Ford W. Harris and has...