Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The annual demand for a product of XYZ company is 12.000. The cost of ordering this product is CU25 and the holding cost is CU0.5/(piece

The annual demand for a product of XYZ company is 12.000. The cost of ordering this product is CU25 and the holding cost is CU0.5/(piece year). The company in question wishes to follow the "Pending Order" stock policy and the holding cost is CU5/(piece year). The lead time for this product is 2 days and it is worked for 300 days a year. In this case, calculate the economic order quantity, the highest pending order quantity and the highest stock level

Step by Step Solution

3.46 Rating (159 Votes )

There are 3 Steps involved in it

Step: 1

Given Details Annual Demand D 12000 UnitsYear Setup Cost S 25 Cu Holding cost H 05 Cu Lead time ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Materials Management

Authors: Arnold J. R. Tony, Gatewood Ann K., M. Clive Lloyd N. Chapman Stephen

8th edition

9386873249, 134156323, 978-9386873248

More Books

Students also viewed these Human Resource Management questions

Question

What a forward rate is? AppendixLO1

Answered: 1 week ago

Question

What is Hoshin planning?

Answered: 1 week ago

Question

Should an MRP be used with dependent or independent demand items?

Answered: 1 week ago

Question

How do you think adults might react in a similar experiment?

Answered: 1 week ago