Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A manufacturer has a production facility that requires 10,251 units of component JY21 per year. Following a long-term contract, the manufacturer purchases component JY21 from
A manufacturer has a production facility that requires 10,251 units of component JY21 per year. Following a long-term contract, the manufacturer purchases component JY21 from a supplier with a lead time of 8 days. The unit purchase cost is $38.1 per unit. The cost to place and process an order from the supplier is $191 per order. The unit inventory carrying cost per year is 23 percent of the unit purchase cost. The manufacturer operates 250 days a year. Assume EOQ model is appropriate. What is the optimal annual ordering cost for the manufacturer? Use at least 4 decimal places
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started