Question
In company XYZ they sell 750.000 units of a specific product in a year. People from the procurement department earn $380 a month (30 days
In company XYZ they sell 750.000 units of a specific product in a year. People from the procurement department earn $380 a month (30 days average in a month). Every time they order a purchase, it requires 30 hours from the procurement department. Additionally the transport of merchandise in average is $200 every time they order, and the paperwork necessary to make any order is $72,5 each. In the other hand, costs of obsolete inventory in a year are $340.000 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 $1,15 per unit due to funding activities that include interests. The warehouse charges $2,5 per unit to store them. It takes the suppliers 20 days to deliver the merchandise once ordered. The company wishes to have 3.200 in stock as a minimum. Determine the EOQ and the ROP given the information above.
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