Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

M. Cotteleer Electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances. One of the components has an annual

image text in transcribed M. Cotteleer Electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances. One of the components has an annual demand of 270 units, and this is constant throughout the year. Carrying cost is estimated to be $0.75 per unit per year, and the ordering (setup) cost is $21 per order. a) To minimize cost, how many units should be ordered each time an order is placed? units (round your response to two decimal places). b) How many orders per year are needed with the optimal policy? orders (round your response to two decimal places). c) What is the average inventory if costs are minimized? units (round your response to two decimal places). d) Suppose that the ordering (setup) cost is not $21, and Cotteleer has been ordering 175 units each time an order is placed. For this order policy (of Q=175 ) to be optimal, the ordering (setup) co: would have to be $ (round your response to two decimal places)

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

Essentials Of General Management In Africa

Authors: Lemayon Lemilia Melyoki, Betty Jane Punnett

1st Edition

0367435195, 978-0367435196

More Books

Students also viewed these General Management questions

Question

Explain the benefits of visualization. Critical T hinking

Answered: 1 week ago