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Phillip Flamm's Computer Store in Texas sells a printer for $200. Demand is constant during the year, and annual demand is forecasted to be 480
Phillip Flamm's Computer Store in Texas sells a printer for $200. Demand is constant during the year, and annual demand is forecasted to be 480 units. Holding cost is $25 per unit per year, whereas the cost of ordering is $80 per order. Currently, the company is ordering 12 times per year (40 units each time). There are 250 working days per year, and the lead time is 6 days. a) Given the current policy of ordering 40 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, the total of ordering and holding cost is $ (round your response to the nearest whole number). c) The reorder point is units (round your response to the nearest whole number)
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