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A company purchare a compocacut for e manufacture if beat it main product directly from suppliess. The production which is operated at a constaut rate
A company purchare a compocacut for e manufacture if beat it main product directly from suppliess. The production which is operated at a constaut rate will require 1020 componers per months through out e year. Ordering cost per order is f2so and each component cost $25. Annual holding cost is esfimated to be 20% e purchase pria, lead time is Sdays and there are 250 working days in a year. Calculate a. Economic order quantity/sia b. The voder cycled time c. Re-order level d. Total mivimam annul anventory costs
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