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Mondher has been recently hired by Dell Company which products and commercializes computers. The financial analysts forecasts that its production process will require 47.420 units
Mondher has been recently hired by Dell Company which products and commercializes computers. The financial analysts forecasts that its production process will require 47.420 units over its planning period (360 working days). The ordering costs amount to an average of $15.5 per order while the holding cost per unit is estimated at $3. The delivery time is five days. 1) What are the EOQ and the optimal number of orders? Interpret. 2) What is the reorder point? Interpret. 3) What is the expected time between two orders? Interpret.
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