Question
A manufacturer has a production facility that requires 14,476 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 14,476 units of component JY21 per year. Following a long-term contract, the manufacturer purchases component JY21 from a supplier with a lead time of 12 days. The unit purchase cost is $23.2 per unit. The cost to place and process an order from the supplier is $162 per order. The unit inventory carrying cost per year is 16 percent of the unit purchase cost. The manufacturer operates 250 days a year. Assume EOQ model is appropriate. What is the optimal length of inventory cycle in days?
Use at least 4 decimal places.
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