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Exam 1 1. Southeastern Bell stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly demand for these
Exam 1 1. Southeastern Bell stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly demand for these connectors is 14,500 units. Southeastern estimates its annual holding cost for this item to be $25 per unit. The cost to place an order from the supplier is $75. The company operates 300 days per year, and the lead time to receive an order from the supplier is 3 working days. a) What is the economic order quantity? (round your response to the nearest whole number) b) What is the total holding cost? (round your response to the nearest whole number) c) What is the total ordering cost? (round your response to the nearest whole number) d) What is the total cost excluding purchase cost? (round your response to the nearest whole number) e) What is the total cost including purchase cost? (round your response to the nearest whole number) f) What is the reorder point? (round your response to the nearest whole number) g) The supplier required that the products must be purchased in multiples of 50 (i.e., 50, 100, 150, 200, 250, 300...). How many products should be ordered at a time to minimize total costs while meeting supplier requirements? 1.00
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