A local welding company keep an inventory of safety glasses to product their workers. On average, they need 6250 units safety glasses per year to
A local welding company keep an inventory of safety glasses to product their workers. On average, they need 6250 units safety glasses per year to safely perform the work. It costs 50 dollars per year to hold a safety glasses in inventory and 220 dollars to place an order from their supplier. Assume you are the inventory manager of the company and answer the following questions:
a. What is their optimal order quantity?
b. What is the yearly holding and ordering costs?
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
To find the optimal order quantity we can use the Economic Order Quantity EOQ fo...
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Step: 2
Step: 3
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Authors: Richard A. Mann, Barry S. Roberts
15th Edition
1285141903, 1285141903, 9781285141909, 978-0538473637
