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A company assembles several components to make a product. One of the components needed are purchased for $35.3 per unit from a manufacturer. The store
A company assembles several components to make a product. One of the components needed are purchased for $35.3 per unit from a manufacturer. The store requests the manufacturer to send a shipment every 11 weeks. The holding cost per year is 18.6 percent of the unit purchase price. The order lead time is 3 weeks. The company operates 52 weeks per year. Assume the weekly demand is constant at 93 units. Use at least 4 decimal places. To avoid shortage, the company must place an order when the ending inventory level hits units.
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