Question
A manufacturer buys cardboard boxes from a supplier. The monthly demand is 3000 boxes and is uniform throughout the year. The cost of each
A manufacturer buys cardboard boxes from a supplier. The monthly demand is 3000 boxes and is uniform throughout the year. The cost of each box is Rs. 4.00. The estimated order cost is Rs. 6.00 and the carrying cost is 2.5% per month. (a) What are the EOQ, the annual order cost & the annual carrying cost? (b) If the actual demand turns out to be 6000 per month, and you have used the EOQ as calculated in sec (a), what would be the annual order & carrying cost? -
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Operations Management Creating Value Along the Supply Chain
Authors: Roberta S. Russell, Bernard W. Taylor
7th Edition
9781118139523, 0470525908, 1118139526, 978-0470525906
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