Question
ABC Inc. is interested in minimizing their inventory cost. If the annual demand is estimated at 1,000,000 units and the ordering cost is $75 per
ABC Inc. is interested in minimizing their inventory cost. If the annual demand is estimated at 1,000,000 units and the ordering cost is $75 per order and the holding cost is $0.25 per unit, what is the cycle time in days (rounded to the nearest day ) assuming a 250 day year and they must order in batches of 100 units? Is it 4 days?
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Probability and Random Processes With Applications to Signal Processing and Communications
Authors: Scott Miller, Donald Childers
2nd edition
123869811, 978-0121726515, 121726517, 978-0130200716, 978-0123869814
