Question
Phillip Flamm's Computer Store in Texas sells a printer for $210. Demand is constant during the year, and annual demand is forecasted to be 600
Phillip Flamm's Computer Store in Texas sells a printer for $210. Demand is constant during the year, and annual demand is forecasted to be 600 units. Holding cost is $25 per unit per year, whereas the cost of ordering is $75 per order. Currently, the company is ordering 12 times per year (50 units each time). There are 250 working days per year, and the lead time is 12 days.
a) Given the current policy of ordering 50 units at a time, the total of the annual ordering cost and the annual holding cost is $ _______(round your response to the nearest whole number).
b) If the company used the absolute best inventory policy, what would be the total of ordering and holding costs?(round your response to the nearest whole number).
c) What is the reorder point?(round your response to the nearest whole number).
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