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You are the new inventory manager of Durham Fasteners Inc. The company uses 75,000 units of Part #A38821 per year. Administrative costs associated with placing
You are the new inventory manager of Durham Fasteners Inc. The company uses 75,000 units of Part #A38821 per year. Administrative costs associated with placing and tracking an order are $36 per order, and it costs $16 per year to hold each unit of this part in inventory. Durham Fasteners operates 310 work days each year. The lead time with our supplier for this part is 6 days, and we have a safety stock policy of 2 days. How many units of Part #A38821 should we order at a time? Round your answer to the NEAREST whole unit.
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To determine the optimal order quantity for Part A38821 we can use the Economic Order Quantity EOQ ...Get Instant Access to Expert-Tailored Solutions
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