Question
Annual demand for a component is 20,000 units per year. Storage cost per unit per year is 8 and each order costs 200. What is
Annual demand for a component is 20,000 units per year. Storage cost per unit per year is £8 and each order costs £200. What is the company's economic order quantity?
1. | 5,000 units. | |
2. | 4,000 units. | |
3. | 1,000 units. | |
4. | 500 units. | |
5. | 2,000 units. |
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Managing Supply Chain and Operations An Integrative Approach
Authors: Thomas Foster, Scott E. Sampson, Cynthia Wallin, Scott W Webb
1st edition
132832402, 978-0132832403
