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In company ABC there's a monthly demand in average of 50.000 computers in a year. People from the procurement department earn $410 a month
In company ABC there's a monthly demand in average of 50.000 computers in a year. People from the procurement department earn $410 a month (21 days average in a month). Every time they order a purchase, it requires 50 hours from the procurement department. Additionally the transport of merchandise in average is $300 every time they order, and the paperwork necessary to make any order is $28 each. In the other hand, costs of obsolete inventory in a year are $420.000 which are diluted as a cost per unit due to the nature of the business, and to maintain the current level of inventories costs to the company $0,4 per unit due to funding activities that include interests. It takes the suppliers 16 days to deliver the merchandise once ordered. The company wishes to have 3.500 in stock as a minimum. Determine the EOQ and the ROP given the information above.
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