Question
The Bolger company has obtained the following data: Assumption 1: Working days per year Normal use per day Maximum use per day Minimum use
The Bolger company has obtained the following data: Assumption 1: Working days per year Normal use per day Maximum use per day Minimum use per day Lead time 5 days Variable cost of placing one order Variable carrying cost per unit $1 250 Required: a) Economic Order Quantity c) Ordering Point (Reorder Level) e) Absolute Maximum Inventory time and usage Assumption 2: Working days per year Annual usage Maximum use per day Lead time Cost of placing one order Carrying cost percentage Per unit cost of material 250 10% $10 500 units 600 units 100 units Required: a) Economic Order Quantity c) Ordering Point (Reorder Level) $36 b) Safety Stock Maximum d) Normal Maximum Inventory f) Average inventory assuming normal lead 5 days 125,000 units 600 units $36 b) Safety Stock Maximum ||
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Financial Management for Public Health and Not for Profit Organizations
Authors: Steven A. Finkler, Thad Calabrese
4th edition
133060411, 132805669, 9780133060416, 978-0132805667
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