Answered step by step
Verified Expert Solution
Question
1 Approved Answer
ch10, thank you for your help!! need B and E The AsM Hobby Shop carries a line of radio controlled model racing cars, Demand for
ch10, thank you for your help!! need B and E
The AsM Hobby Shop carries a line of radio controlled model racing cars, Demand for the cars is assumed to be constant at a rate of so cars per month. The cars cost 398 each, and ordering costs are aparoximately $15 per order, regandless of the order size. The annual holding cost rate is 20th. (a) Determine the economic order quantity and totol anoual cost (in s) under the assumption that no backorders are permitted. (Rhound wour answers to two decimal places.) Q+=TC=5 (b) Using a sas per-unit per-year backorder cost, determine the minimum cost inventory polley and total annual cost (in s) for the model racing cars. (Round your answers to two decimal places.) Q=TC=5xx (c) What is the maxmum number of days a customer would have to wait for a backorder under the poficy in part (b)? Assume that the Hobby shop is epen for business 300 days per vear. (Roound your answer to two decimal placess) days (d) Wouad you recemmend a no-backorder or a backorder inventory policy for this product? fixplain. Yes, the maximum wait is over a week leng, but the cost savings of the backorder case is large anough to astify a leng wait. Yec, the maximum wait is less than a week and the backorder case has a lower cost than the foQ case. No, the maxinum wait is less than a week but the EOQ case has a lower cost than the bachorder case. No, the maximum wait is over a week long. which does not justify the cost savings of the backorder case. No, the masimum wait is ower a neek long and the EOQ cale has a lower cost than the backnorder case. (e) If the lead time is six days, what is the reorder point for both the no-backorder and backorder inventory polcies? (Alound your answers to two decimai places.) EOQ x=1 xatere Backorder r= Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
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