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b) If the company used the absolute best inventory policy, the total of ordering and holding cost is ? (round to nearest whole number) c)
b) If the company used the absolute best inventory policy, the total of ordering and holding cost is ? (round to nearest whole number)
c) The Reorder point is ? units (round to nearest whole number)
Phillip Flamm's Computer Store in Texas sells a printer for $180. Demand is constant during the year, and annual demand is forecasted to be 900 units. Holding cost is $25 per unit per year, whereas the cost of ordering is $40 per order. Currently, the company is ordering 12 times per year ( 75 units each time). There are 250 working days per year, and the lead time is 5 days a) Given the current policy of ordering 75 units at a time, the total of the annual ordering cost and the annual holding cost is $ (round your response to the nearest whole number)Step by Step Solution
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