Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ergonomics Incorporated sells ergonomically designed office chairs. The company has the following information: Average demand = 3 2 units per day Average lead time =

Ergonomics Incorporated sells ergonomically designed office chairs. The company has the following information:Average demand =32 units per dayAverage lead time =46 days Item unit cost = $66 for orders of less than 360 unitsItem unit cost = $64 for orders of 360 units or moreOrdering cost = $41Inventory carrying cost =25%The business year is 250 days.A.How many chairs should the firm order each time? Assume there is no uncertainty at all about the demand or the lead time.B. What will the firms average inventory be under each alternative?C.What will be the annual ordering and holding costs for each alternative?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Operations management

Authors: Jay Heizer, Barry Render

10th edition

978-0136119418, 136119417, 978-0132163927

More Books

Students also viewed these General Management questions