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The following data relates to an item of raw material: Cost of raw material Usage per day 16.00 per unit 200.00 units Minimum lead
The following data relates to an item of raw material: Cost of raw material Usage per day 16.00 per unit 200.00 units Minimum lead time 20 days Maximum lead time 30 days Cost of ordering material 300.00 per order Holding costs 10% per annum N.B. Assume that each year consists of 48 working weeks of 5 days per week. Measure the re-order quantity?
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To calculate the reorder quantity we need to determine the Economic Order Quantity EOQ The EOQ is th...
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Operations Research An Introduction
Authors: Hamdy A. Taha
11th Edition
0137625723, 978-0137625727
