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RighWay Sdn. Bhd .the pioneers in the textile industry specializing in t-shirts is concerned about its stock of popular shirt. Unit cost is RM
RighWay Sdn. Bhd .the pioneers in the textile industry specializing in t-shirts is concerned about its stock of popular shirt. Unit cost is RM 11.70 and annual holding cost is 27% of unit cost. Demand for an item is constant at 135 units per week. Company operates 52 weeks per year and 5 days per week. The company uses fixed order quantity policy to determine the order quantity for the shirt. Cost to place one order is RM81. Determine: 1) Optimal order quantity (5 marks) 2) Expected number orders placed per year (3 marks) 3) Cycle inventory 4) Total Cost (2 marks) (5 marks) 5) The reorder level if lead time is constant at 4 days (5 marks)
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