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Cress Electronic Products manufactures components used in the automotive industry. Cress purchases parts for use in its manufacturing operation from a variety of different suppliers.
Cress Electronic Products manufactures components used in the automotive industry. Cress purchases parts for use in its manufacturing operation from a variety of different suppliers. The annual demand is units, the ordering cost is $ per order, and the annual holding cost rate is
a If the cost of the part is $ per unit, what is the economic order quantity?
b Assume days of operation per year. If the lead time for an order is days, what is the reorder point?
c What is the total cost of this inventory system.
d Find the cycle time and the number of times an order will be placed in a year.
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