Question
The Bosch factory in New Bern, NC uses dishwasher motors at asteady rate of 13658 units per year. Bosch procures these unitsfrom a supplier at
The Bosch factory in New Bern, NC uses dishwasher motors at asteady rate of 13658 units per year. Bosch procures these unitsfrom a supplier at a purchase cost of $107 per unit. Boschreceives an order 13 days after it is placed. Regardless of thenumber of units ordered, Bosch incurs a fixed cost of $2816 forplacing, shipping, and receiving the order. The holding cost perunit per year is 26% of the purchase cost per unit. Assume Boschoperates 364 days, 52 weeks, or 12 months per year.
First find the optimal economic order quantity for the motors.Then find the requested performance measure for that quantity.
Rounding instructions: Carry your calculations to at least 3decimal places. Enter your answer rounded to one decimal place(nearest tenth).
Compute the optimal time a unit spends in inventoryin days.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started