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INDUSTRIAL CASE Your company manufactures approximately 1 6 , 0 0 0 RV motor homes a year, and sells them for prices between $ 3
INDUSTRIAL CASE Your company manufactures approximately RV motor homes a year, and sells them for prices between $ and $ You are responsible for maintaining the inventory for the required tires to meet this demand. You know that your normal weekly demand for tires is approximately with a standard deviation of tires a week. Because of the high value of the finished product, your company has a standard for its inventory of having a chance of having stock in inventory between orders. Failure to have the tires through normal channels will cost the company $ per tire to expedite them to the factory in weeks. The tires cost $ each, FOB at the tire factory in Akron, Ohio. The normal transportation cost is $ each from Akron to your factory. From the time of making the order to when the tires are available at the factory, it takes weeks weeks for order processing: weeks for picking and transportation; and weeks for moving from receiving to the assembly line You have determined that your inventory carrying cost is approximately percent and it costs you $ to make an order. Assume weeks a year in your analysis
INDUSTRIAL CASE
Your company manufactures approximately RV motor homes a year, and sells them for
prices between $ and $ You are responsible for maintaining the inventory for the
required tires to meet this demand. You know that your normal weekly demand for tires is
approximately with a standard deviation of tires a week. Because of the high value of
the finished product, your company has a standard for its inventory of having a chance of
having stock in inventory between orders. Failure to have the tires through normal channels will
cost the company $ per tire to expedite them to the factory in weeks. The tires cost $
each, FOB at the tire factory in Akron, Ohio. The normal transportation cost is $ each from
Akron to your factory. From the time of making the order to when the tires are available at the
factory, it takes weeks weeks for order processing: weeks for picking and transportation;
and weeks for moving from receiving to the assembly line You have determined that your
inventory carrying cost is approximately percent and it costs you $ to make an order.
Assume weeks a year in your analysis
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