The following data exists for the computer manufacturer in problem #5: a. Calculate the economic order quantity

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The following data exists for the computer manufacturer in problem #5: image text in transcribed

a. Calculate the economic order quantity for the monitor. Round your answer to the nearest whole number.

b. Suppose the company decides to order 64 monitors at a time. What would their yearly holding and ordering costs for the monitor be?

c. Based on the data, what should the reorder point be for the Viewsonic monitor?

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The Fundamentals Of Production Planning And Control

ISBN: 978-0130176158

1st Edition

Authors: Stephen Chapman

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Question Posted: Jul 12, 2024 03:02 AM

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The following data exists for the computer manufacturer in problem #5: a. Calculate the economic order quantity

Question:

Estimated annual demand: Cost: Lead time: Standard deviation of weekly demand: Holding cost per unit per year: Ordering cost: Desired service level: 15,376 monitors (50 weeks per year) $640 per monitor 2 weeks 16 monitors 40% of item cost $25 per order 95% (z = 1.65)

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The Fundamentals Of Production Planning And Control

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