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Can anyone help out with this? Its for my Operations Managment course 13.3. (LO 13.4. 13.6) Chemco Company uses a highly toxic chemical in one
Can anyone help out with this? Its for my Operations Managment course
13.3. (LO 13.4. 13.6) Chemco Company uses a highly toxic chemical in one of its manufacturing processes. It must have the product delivered by speciai cargo trucks designed for safe shipment of chemicals. As suchI ordering (and delivery) costs are relatively high. at $3600 per order. The chemical product is packaged in 1-litre plastic containers. The cost of holding the chemical in storage is $50 per litre per year. The annual demand for the chemical, which is constant overtime, is T000 litres per year. The lead time from time of order placement until receipt is 10 days. The company operates 310 working days per year. Calculate the optimal order quantity, total minimum inventory cost, and the reorder pointStep by Step Solution
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