Question
You are a buyer for a widget: Annual Demand = 1200 (assume continuous constant rate) Price = $40 Order Cost = $2000 Inventory Holding Cost
You are a buyer for a widget:
Annual Demand = 1200 (assume continuous constant rate)
Price = $40
Order Cost = $2000
Inventory Holding Cost = 20%
Lead Time = 14-Days
Annual Work Days = 250
At what inventory level do you place your next order?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To determine the inventory level at which the next order should be placed we can use the Economic Or...
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Step: 2
Step: 3
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Microeconomics and Behavior
Authors: Robert Frank
9th edition
9780077723750, 78021693, 77723759, 978-0078021695
