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Suppose that Westside Auto, with D = 12,000 units per year, C h = (2.50)(0.20) = $0.50, and C o = $25, decided to operate
Suppose that Westside Auto, with D = 12,000 units per year, Ch = (2.50)(0.20) = $0.50, and Co = $25, decided to operate with a backorder inventory policy. Backorder costs are estimated to be $5 per unit per year. Westside has 250 working days per year. Identify the following:
- Minimum cost order quantity. If required, round your answer to two decimal places. Q* =
- Maximum number of backorders. If required, round your answer to two decimal places. S* =
- Maximum Inventory. If required, round your answer to two decimal places.
- Cycle time. If required, round your answer to two decimal places. T =
- Total annual cost. If required, round your answer to the nearest cent. $
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