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AFG Company supplies an electronic amplifiers to a company that incorporates these amplifiers to C units and other home appliances. The annual demand for these
AFG Company supplies an electronic amplifiers to a company that incorporates these amplifiers to C units and other home appliances. The annual demand for these amplifiers is units, and this is co of ant throughout the year. The cost per unit is S and the inventory holding rate is estimated to be of the unit cost. The ordering cost per order is $ per order.
To minimize cost, how many units should be ordered each time an order is placed?
Estimate the ordering cost, holding cost, and the total cost if co as are minimized?
Suppose that the company was ordering unit per order, what is the total cost under this policy and by how much it will be higherlower than the total cost in b
For the ordering policy in c to be optimal, how much should be the ordering cost per order?
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