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Outdoor Living Manufacturers uses 1,000 units of a product per year. The fixed cost is $21 per order, while the carrying cost is $5 per
- Outdoor Living Manufacturers uses 1,000 units of a product per year. The fixed cost is $21 per order, while the carrying cost is $5 per unit per year. The lead time is 5 days and, therefore, the firm keeps 7 days usage in inventory as safety stock. (Note: Use a 365-day year where required.)
- Calculate the economic order quantity (EOQ)
- How many orders will Outdoor Living Manufacturers place during one year?
- Determine the reorder point in terms of units of product
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Real Estate Investment Strategies Structures Decisions
Authors: David Hartzell, Andrew E. Baum
2nd Edition
1119526094, 978-1119526094
