Question
A tire store expects to sell approximately 100 all-season tires of a certain make, model, and size next year. Annual holding cost is $10
A tire store expects to sell approximately 100 all-season tires of a certain make, model, and size next year. Annual holding cost is $10 per tire and ordering cost is $20 per order. The store operates 360 days a year and has enough storage space in the back. a. What is the EOQ? b. How many times per year would the store reorder if EOQ units are ordered each time? c. What is the length of an order cycle if EOQ units are ordered each time? d. What is the total annual inventory control cost if EOQ units are ordered each time?
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Project Management A Systems Approach to Planning Scheduling and Controlling
Authors: Harold Kerzner
10th Edition
978-047027870, 978-0-470-5038, 470278706, 978-0470278703
