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A manufacturing company places a semi-annual order of 24,000 units at a price of $20 per unit. Its carrying cost is 15% and the order
A manufacturing company places a semi-annual order of 24,000 units at a price of $20 per unit. Its carrying cost is 15% and the order cost is $12 per order.
Required:
- What is the most economical order quantity?
- How many orders need to be placed?
- What s the Total Cost of Inventory?
- How often should an order be placed?
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OM operations management
Authors: David Alan Collier, James R. Evans
5th edition
1285451376, 978-1285451374
