s Michigan State Figurine Inc. (MSF) sells crystal figurines to Spartan fans. MSF buys the figurines...
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s Michigan State Figurine Inc. (MSF) sells crystal figurines to Spartan fans. MSF buys the figurines from a manufacturer for $10 per unit. They send orders electronically to the manufacturer, costing $20 per order and they experience an average lead time of eight days for each order to arrive from the manufacturer. Their inventory carrying cost is 20 percent. The average daily demand for the figurines is two units per day. They are open for business 250 days a year. Answer the following questions: a. How many units should the firm order each time? Assume there is no uncertainty at all about the demand or the lead time. (Do not round intermediate calculations. Round up your answer to the next whole number.) Number of units b. How many orders will they place in a year? Number of orders per year 5 c. What is the average inventory? (Round your answer to 1 decimal place.) Average inventory units s Michigan State Figurine Inc. (MSF) sells crystal figurines to Spartan fans. MSF buys the figurines from a manufacturer for $10 per unit. They send orders electronically to the manufacturer, costing $20 per order and they experience an average lead time of eight days for each order to arrive from the manufacturer. Their inventory carrying cost is 20 percent. The average daily demand for the figurines is two units per day. They are open for business 250 days a year. Answer the following questions: a. How many units should the firm order each time? Assume there is no uncertainty at all about the demand or the lead time. (Do not round intermediate calculations. Round up your answer to the next whole number.) Number of units b. How many orders will they place in a year? Number of orders per year 5 c. What is the average inventory? (Round your answer to 1 decimal place.) Average inventory units
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a To determine the Economic Order Quantity EOQ we can use the EOQ for... View the full answer
Related Book For
Managing Operations Across the Supply Chain
ISBN: 978-0078024030
2nd edition
Authors: Morgan Swink, Steven Melnyk, Bixby Cooper, Janet Hartley
Posted Date:
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