Question
Battery Wholesale, Inc. purchases batteries for $14 each, and it costs $11 to process an order. The company sells about 12,000 of a particular
Battery Wholesale, Inc. purchases batteries for $14 each, and it costs $11 to process an order. The company sells about 12,000 of a particular type of battery per year at a uniform rate. The company is open 5 days a week for 52 weeks per year with the exception of six holidays a year. The order lead time is 3 days, and the company wants to have an average of 2 days' sales on hand as safety stock when a new order is scheduled to arrive. The holding cost is estimated to be 24 percent of the item cost per year. a. Determine the EOQ. b. Determine the expected level of the maximum inventory
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Operations Management in the Supply Chain Decisions and Cases
Authors: Roger Schroeder, M. Johnny Rungtusanatham, Susan Goldstein
6th edition
73525243, 978-0073525242
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