Cohen Industrial Products uses 2,100 switch assemblies per month and then reorders another 2,100. The relevant carrying
Question:
Cohen Industrial Products uses 2,100 switch assemblies per month and then reorders another 2,100. The relevant carrying cost per switch assembly is $20 every year, and the fixed order cost is $300. The plant operates 250 days in a year and maintains a safety stock of 2 days’ worth of switch assemblies since the lead time to receive orders is 3 days. Calculate the economic order quantity (EOQ) and the reorder point.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Principles Of Managerial Finance
ISBN: 9781292018201
14th Global Edition
Authors: Lawrence J. Gitman, Chad J. Zutter
Question Posted: