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The demand for a particular part called SKU 005 is 2,500 units a year. The cost of one SKU 005 is $150.00. It costs $50.00
- The demand for a particular part called SKU 005 is 2,500 units a year. The cost of one SKU 005 is $150.00. It costs $50.00 to place an order for SKU 005, and the user of SKU 005 has a per year inventory carrying cost of 10% of unit cost. Assume 250 working days in the year where SKU 005 is used. (Noteshaper: Scenario #26)
- What is the combined annual holding and ordering cost of an order size of 200 units for SKU 005?
- How many of SKU 005 should be ordered, to minimize combined ordering and holding costs?
- The vendor who sells SKU 005 has just offered a 10% discount for orders of 500 or more. Now how many should be ordered?
- Once the purchasing manager for SKU 005 places an order, the vendor requires 10 working days to deliver that order. What should be the purchasing managers reorder point?
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