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You have the following data: Ordering cost, $300/order; Carrying cost, $10/year; Demand rate, 20 units/day; Production rate, 70 units/day; Supply lead time, 10 weeks; Safety
You have the following data: Ordering cost, $300/order; Carrying cost, $10/year; Demand rate, 20 units/day; Production rate, 70 units/day; Supply lead time, 10 weeks; Safety stock, 120 units; Stock on-hand, 300 units; Total open orders, 900 units. With this information, answer the following (Value: 20 points): 1) anual ordering cost (4 points) 2) anual carrying cost (4 points) 3) total cost (4 points) 4) should a new order be placed? yes, no, and why (4 points) 5) if yes, what is the amount of units that should be ordered? (4 points)
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