Question
Matt's Manufacturing & Customs stocks a special switch connector in his central warehouse for the sake of supplying the field service crew when they need
Matt's Manufacturing & Customs stocks a special switch connector in his central warehouse for the sake of supplying the field service crew when they need them for customer breakdowns. The yearly demand for these connectors is 15000. Matt estimates his holding cost for this item to be $25 per unit. The cost to place and process an order for more of these connectors is $75. Matt's company operates 300 days per year, and the lead time promised (and observed) from the supplier of the switch connector is 2 days.
- Determine the economic order quantity.
- Determine the annual holding cost.
- Determine the annual ordering cost.
- What would be the most reasonable reorder point?
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Analysis and Design of Analog Integrated Circuits
Authors: Paul R. Gray, Paul J. Hurst Stephen H. Lewis, Robert G. Meyer
5th edition
1111827052, 1285401107, 9781285401102 , 978-0470245996
