Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Annual demand for the Dobbs model airplane kit is 8 0 , 0 0 0 units. Albert Dobbs, president of Dobbs' Ter - rific Toys,

Annual demand for the Dobbs model airplane kit is 80,000 units. Albert Dobbs, president of Dobbs' Ter- rific Toys, controls one of the largest toy companies in Nevada. He estimates that the ordering cost is $40 per order. The carrying cost is $7 per unit per year. It is 25 days from the time that Albert places an order for the model airplane kits until they are received at his warehouse. During this time, the daily demand is estimated to be 450 units.
(a) Compute the EOQ, ROP, and optimal number of orders per year.
(b) Albert now believes that the carrying cost may be as high as $14 per unit per year. Furthermore, he estimates that the lead time may be 35 days instead of 25 days. Redo part (a), using these re- vised estimates.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Natural Resource Management Reimagined

Authors: Robert G. Woodmansee

1st Edition

1108740138, 978-1108740135

More Books

Students also viewed these General Management questions