Baltimore Tech INC uses 2,500 per year of a certain subassembly that has an annual holding cost of $30 per unit. Each order placed
Baltimore Tech INC uses 2,500 per year of a certain subassembly that has an annual holding cost of $30 per unit. Each order placed costs $140. The company operates 250 days per year and it has found that an order must be placed with the supplier 6 working days before it can expect to receive that order. For this subassembly, calculate: (a) The economic order quantity (Round answer to nearest whole number). (4 points) (b) The annual holding cost (4 points) (c) The annual ordering cost (4 points) (d) The reorder point (4 points).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started