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Question 11 An auto parts supplier sells Hardy-brand batteries to car dealers and auto mechanics having a production period of 375 days. The annual demands
Question 11 An auto parts supplier sells Hardy-brand batteries to car dealers and auto mechanics having a production period of 375 days. The annual demands approximately 1,400 batteries. The supplier pays $25 for each battery and estimates that the annual holding cost is 30 percent of the battery's value. It costs approximately $20 to place an order (managerial and clerical costs). The supplier currently orders 100 batteries per month. a. Calculate EOQ savings. b. If it takes 3 days to receive an order from suppliers at what inventory level should another order be placed? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B I S Paragraph Arial v 14px A Tx 76 O u a ... I P
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