Question
A manufacturer in informs you that due to limited production capacity and high demand, they cannot ship your order at once, but instead will ship
A manufacturer in informs you that due to limited production capacity and high demand, they cannot ship your order at once, but instead will ship you 300 filters per day until the order is filled. Again, the company is open for business 20 days per month, 12 months per year and it takes 2 days for an order to arrive once it has been placed.
Carrying cost - P 2.00 Ordering cost - P 10 Annual demand - 36,000 Annual days - 240 Demand rate - 150.00 Production rate - 300
What is the reorder point? What is the maximum inventory level? The quantity to order is ____? What is the total annual inventory cost? (two decimal places)
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