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The demand for a product is 600 units per week, and the items are withdrawn at a constant rate. The setup cost for placing an
The demand for a product is 600 units per week, and the items are withdrawn at a constant rate. The setup cost for placing an order to replenish inventory is $25. The unit cost of each item is $3, and the inventory holding cost is $0.05 per item per week. Show how each of these below changes, will impact Maximum Inventory S*
(a) The setup cost is reduced to 50% of original value
(b) The annual demand rate become three times as large as its original value.
(c) The unit holding cost increases to 150% of its original value.
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