Question
An electrical component manufacturing firm uses valves at the rate of 25000 valves per year. The cost of the single valve is $1, while the
An electrical component manufacturing firm uses valves at the rate of 25000 valves per year. The cost of the single valve is $1, while the inventory carrying cost is 20% of the value of the stocks. The valves are supplied in lots and the cost of procurement, including transportation costs, is 40$ per order.
For all intermediate calculations always use 2 decimal points (for example 63.455 should be rounded to 63.46 and 22.432 should be rounded to 22.43). The final answer should be rounded to the next integer.
Choose the closest answer from the given choices and write it in the appropriate field.
d. The manufacturer received a call from the supplier informing him that the orders will be delayed by 200 days because of problems at the suppliers plant. Assuming that we have 320 working days per year and considering the original consumption rate of 25000 valves/year, complete the following sentence:
- Once the on-hand inventory reaches( ) valves, the manufacturer has to initiate an order,
Choices: (432, 633, 963, 1144, 1202, 1319, 1592, 2036, 2756, 2976, 3632)
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