Question
Senja Sdn Bhd stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly demand for these connectors is 15,000
Senja Sdn Bhd stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly demand for these connectors is 15,000 units. Senja estimates its annual holding cost for this item to be RM25.00 per unit. The cost to place and process an order from the supplier is RM75.00. The company operates 300 days per year and the lead to receive an order the supplier is 3 working days.
(a) Determine the economic order quantity (3 marks)
(b) Determine the Average Quantity. (2 marks)
(c) Determine the annual holding costs (3 marks)
d) Determine the annual ordering costs (3 marks)
(e) Determine the number of order place a year. (3 marks)
(f) Determine the time between orders. (3 marks)
(g) Determine the reorder point (2 marks)
(f) As the Senior Planner of Senja Sdn Bhd you are ask to present data from items (a) to (g) to one of the Chief Executive Officer (CEO).
Draw a graphical diagram and briefly explain how this will be useful in future decision- making process. (11 marks)
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