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You are managing the inventory for an item valued at $100 per unit. It costs about $300 to place an order due to employee salaries
You are managing the inventory for an item valued at $100 per unit. It costs about $300 to place an order due to employee salaries and the system costs. The annual demand is 27,500 units per year and you have a holding cost rate is 24% per year. What is the optimal order cycle time T* in weeks for this item? Assume 52 weeks in the year and use three significant digits, that is, if your answer is 3.4567, enter 3.46
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